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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.
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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