Current ratio-current liabilities

Assignment Help Financial Management
Reference no: EM131449492

CURRENT RATIO The Stewart Company has $1,365,000 in current assets and $614,250 in current liabilities. Its initial inventory level is $313,950, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0? Round your answer to the nearest cent.

Reference no: EM131449492

Questions Cloud

How would you conceptualize maria case : Maria is a 19-year-old college student in her sophomore year. How would you conceptualize Maria's case
About financial statement analysis is most correct : Which of the following statements about financial statement analysis is most correct?
Write a brief summary of the article and your thoughts : Write a brief summary of the article and your thoughts on the subject. You many answer questions like: Do you agree with the article?
Supply and demand equation : Suppose that a market is decribed by the following supply and demand equation:
Current ratio-current liabilities : CURRENT RATIO The Stewart Company has $1,365,000 in current assets and $614,250 in current liabilities.
Expansionary fiscal policy increases budget deficit : Expansionary fiscal policy increases budget deficit, the resulting increase in aggregate demand could be inflationary.
Determining the kind of monetary policy : 1. If you were the President of this country, which component of GDP (C, I, G, or NX) would you focus on to encourage growth? Why?
Develop a powerpoint on life span development : Develop a PowerPoint on life span development from infancy to late adulthood.
Problem regarding the competitive equilibrium : Suppose the price of Y, PY = 1. Calculate the price of X, PX that will lead to a competitive equilibrium.

Reviews

Write a Review

Financial Management Questions & Answers

  Included as short term financing

Which of the following would NOT be included as a short -term financing?

  What is the equivalent ticket sales

28 years ago, ET: The Extra-Terrestrial generated $435,110,554 in ticket sales. What is the equivalent ticket sales figure in today's dollars (assume a 3% inflation factor compounded annually).

  Acquire a company within the european union

Would you seek to acquire a company within the European Union or outside of it and describe the advantages and disadvantages of the choice you made - describe the advantages and disadvantages inherent in the option you did not choose.

  How do you set the minimum required return for a project

How do you set the minimum required return for a project? How do you compute project revenue when there is erosion? How do you compute the value of a previously acquired asset used in a new project? How do you evaluate projects from two separate divi..

  What is the effective annual interest on this loan

You are considering financing the purchase of a new car. The negotiated price of the car is $38,000 including taxes and licenses. The dealer will allow you $8,000 in trade for you current car. You will finance the balance of the purchase for 6 years...

  Acceptable capital budgeting opportunities

Input Out Oil Inc.'s CFO has stated that the firm will pay dividends only if acceptable capital budgeting opportunities do not exist. Which concept did the CFO most likely base her decision on?

  What is your best estimate of the return of the asset

You have found an asset with a 13.20 percent arithmetic average return and a 10.36 percent geometric return. Your observation period is 30 years. What is your best estimate of the return of the asset over the next 5 years? 10 years?

  Forecasting risk is defined as the possibility

Forecasting risk is defined as the possibility that:

  Mutual fund-the market index and the risk-free rate

Consider the following information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .97. What are the Sharpe and Treynor ratios for the fund?

  About your favorite brands within the hospitality industry

Think about your favorite brands within the hospitality industry. Select 2 of them and discuss how each represents itself with integrity. Provide specific examples to illustrate your ideas.

  What is current price of the bond

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 10 years to maturity, and a coupon r..

  What is the equivalent aftertax yield

A taxable corporate issue yields 6.3 percent. For an investor in a 35 percent tax bracket, what is the equivalent aftertax yield? A municipal bond has 9 years until maturity and sells for $5,451.98. The coupon rate on the bond is 5.46 percent and the..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd