am new to finance and excel. How do I solve these? The Salem Corporation has current assets of $3.0 million. Of this total, $1.0 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Salem has $1.5 million in current liabilities. What are the current and
am new to finance and excel. How do I solve these? The Salem Corporation has current assets of $3.0 million. Of this total, $1.0 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Salem has $1.5 million in current liabilities. What are the current and
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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I am new to finance and excel. How do I solve these?
The Salem Corporation has current assets of $3.0 million. Of this total, $1.0 million is inventory, $0.5 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Salem has $1.5 million in current liabilities.
- What are the current and the quick ratios for Salem?
- If Salem takes $0.25 million in cash and pays off $0.25 million of current liabilities, what happens to its current and quick ratios? What happens to its real liquidity?
- If Salem sells $0.5 million of its accounts receivable to a bank and uses the proceeds to pay off short-term debt obligations, what happens to its current and quick ratios?
- If Salem sells $1.0 million in new stock and places the proceeds in marketable securities, what happens to its current and quick ratios?
What do these examples illustrate about the current and quick ratios?
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