All Study Problems are available in MyLab Finance. The x icon indicates problems in Excel format available in MyLab Finance. MyLab 4-1. (Evaluating liquidity) Aylward Inc. currently has $2,145,000 in current assets and LO2 $858,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.0?

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
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Please help me with question 4-1.
All Study Problems are available in MyLab Finance. The x icon indicates problems in Excel
format available in MyLab Finance.
MyLab
4-1. (Evaluating liquidity) Aylward Inc. currently has $2,145,000 in current assets and LO2
$858,000 in current liabilities. The company's managers want to increase the firm's
inventory, which will be financed by a short-term note with the bank. What level of
inventories can the firm carry without its current ratio falling below 2.0?
Transcribed Image Text:All Study Problems are available in MyLab Finance. The x icon indicates problems in Excel format available in MyLab Finance. MyLab 4-1. (Evaluating liquidity) Aylward Inc. currently has $2,145,000 in current assets and LO2 $858,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.0?
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