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Determining the current and quick ratios

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Current and Quick Ratios

The Nelson Company has $1,336,500 in current assets and $495,000 in current liabilities. Its initial inventory level is $330,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Do not round intermediate calculations. Round your answer to the nearest dollar.

Reference no: EM132531381

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