The Nelson Company has $1,512,000 in current assets and $540,000 in current liabilities. Its initial inventory level is $380,000, and it will raise funds as additional notes payable and use them to increase inventory. 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.)
The Nelson Company has $1,512,000 in current assets and $540,000 in current liabilities. Its initial inventory level is $380,000, and it will raise funds as additional notes payable and use them to increase inventory. 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.)
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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Transcribed Image Text:The Nelson Company has $1,512,000 in
current assets and $540,000 in current
liabilities. Its initial inventory level is
$380,000, and it will raise funds as
additional notes payable and use them to
increase inventory. 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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