Home / Questions / The Nelson Company has 1050000 in current assets and 500000 in current liabilities Its ini...
The Nelson Company has $1,050,000 in current assets and $500,000 in current liabilities. Its initial inventory level is $250,000, and it will raise funds as additional notes payable and use them to increase inventory.
How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.6? Round your answer to the nearest cent.
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What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round your answer to two decimal places.
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