nsen's Auto Supply has $1,021,000 in current assets and $420,000 in current liabilities. Its initial inventory level is $390,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.3? a. $145,652 b. $55,000 c. $23,913 d. $42,308 e. $257,692

nsen's Auto Supply has $1,021,000 in current assets and $420,000 in current liabilities. Its initial inventory level is $390,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.3? a. $145,652 b. $55,000 c. $23,913 d. $42,308 e. $257,692

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 1P

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