Current and Quick Ratios The Nelson Company has $1,187,500 in current assets and $475,000 in current liabilities. Its initial inventory level is $345,000, 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 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar. $ What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
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- Hansen'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. $257,692The Nelson Company has $1,228,500 in current assets and $455,000 in current liabilities. Its initial inventory level is $305,000, 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 2.0? Do not round intermediate calculations. Round your answer to the nearest dollar. $ ___________ What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places. Quick ratio _________________Uzam company has Tk. 1,312,500 in current assets and Tk. 525,000 in current liabilities. Its inventory level is Tk. 375,000 and will raise additional notes payable and use it to increase inventory. How much can Uzam's notes payable increase without pushing its current ration below 2.0?
- Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $21 million in long-term debt. What is the debt ratio? Do not round intermediate calculations. Round your answer to the nearest whole number.Floyd's corporation has $20,000 in current liabilities and $27,000 in current assets. Its initial inventory level is $7,000; and it will rise funds as additional notes payable and use them to increase inventory. How much can Floyd's short-term (notes payable) increase without pushing its current ratio below 1.1 For your answer, round to the nearest 0.01. Do not use the dollar ($) sign. DO NOT USE commas to separate thousands. AnswerIf Inland uses its $400 cash balance to pay off $400 of its long-term debt, what will be its new current ratio?(a) 1.68 (b) 2.03(c) 1.35 (d) 3.12
- Assume that the current ratio for Arch Company is 3.5, its acid-test ratio is 2.0, and its working capital is $360,000. Answer each of the following questions independently, always referring to the original information. Required: How much does the firm have in current liabilities? Note: Do not round intermediate calculations. If the only current assets shown on the balance sheet for Arch Company are Cash, Accounts Receivable, and Merchandise Inventory, how much does the firm have in Merchandise Inventory? Note: Do not round intermediate calculations. If the firm collects an account receivable of $119,000, what will its new current ratio and working capital be?Ace Industries has current assets equal to $4 million. The company's current ratio is 2.0, and its quick ratio is 1.7. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current Liabilities $ Inventory $Justine Company has current assets of P400,000 and current liabilities ofP500,000. Justine Company's current ratio would be increased by: A. The collection of P100,000 of accounts receivable.B. The purchase of P100,000 of inventory on account.C. The payment of P100,000 of accounts payable.D. Refinancing a P100,000 long-term loan with short-term debt
- Ethelbert Inc. has sales of $5,366, total assets of $3,195, and a debt–equity ratio of 1.90. If its return on equity is 13 percent, what is its net income? (Round the intermediate calculations to 4 decimal places. Round the final answers to 2 decimal places. Please demonstrate your steps toward to your final answer. Only a number as your final answer will not yield full rewards)Kingery Corporation has current assets of $1,800,000 and current liabilities of $750,000. If they pay $250,000 of their accounts payable, what will their new current ration be, given that the current ratio is current assets/current liabilities?The Lawrence Company has a ratio of long-term debt to long-term debt plus equity of .34 and a current ratio of 1.6. Current liabilities are $900, sales are $6,320, profit margin is 9.1 percent, and ROE is 19.5 percent. What is the amount of the firm's net fixed assets? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Net fixed assets