he Stewart Company has $2,455,500 in current assets and $1,006,755 in current liabilities. Its initial inventory level is $515,655, and it will raise funds as additional notes payable and use them ncrease inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0? Round your answer to the nearest dollar.

he Stewart Company has $2,455,500 in current assets and $1,006,755 in current liabilities. Its initial inventory level is $515,655, and it will raise funds as additional notes payable and use them ncrease inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0? Round your answer to the nearest dollar.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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