San Diego State University Operations And Supply Chain Management Assignment Help - Current
Question - The Nelson Company has $1,690,000 in current assets and $650,000 in current liabilities. Its initial inventory level is $325,000, and it will raise funds as additional notes payable and use them to increase inventory. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> 1. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.1? Round your answer to the nearest cent. 2. W hat 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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