How much additional short-term funding can it borrow

Reference no: EM13302611

The Mitchem Marble Company has a target current ratio of 2.0 but has experienced some difficulties financing its expanding sales in the past few months. At present the firm has a current ratio of 2.5 and current assets of $2.5 million. If Mitchem expands its receivables and inventories using its short-term line of credit, how much additional short-term funding can it borrow before its current ratio standard is reached?

Reference no: EM13302611

Questions Cloud

Determine will a booster pump be required for the building : The water pressure in the municipal pipeline is 450 kPa, the sum of the local loss coefficients in the building pipes is 11.0, and the flow to be delivered to the top floor at 25 L/s through a 150-mm diameter PVC pipe.

Relationships between procedural and substantive rules : What is the relationships between procedural and substantive rules?

Estimate length of pipeline required for the friction losses : Water leaves a reservoir at 0.05 m^3/s through a 200-mm riveted steel pipeline that protrudes into the reservoir and then immediately turns a 90º bend with a local (minor) loss coefficient equal to 0.3.

Identification of parties and procedural details : Identification of parties and procedural details

How much additional short-term funding can it borrow : If Mitchem expands its receivables and inventories using its short-term line of credit, how much additional short-term funding can it borrow before its current ratio standard is reached?

Find the theoretical minimum amount of chlorine required : A stream with a flow of 22 mgd contains 180 mg/L of sodium cyanide in the form of NaCN. Chlorine can be added to destroy the NaCN waste according to the reaction shown below. Find the theoretical minimum amount of chlorine required (in lb/day).

Illegal to pander virtual child pornography : Why should it be illegal to “pander” virtual child pornography when it is not illegal to possess it?

Which one has the highest present value : How would I find the present value of the trust fund's final value, the present value of each of the three offers, and then indicate which one has the highest present value?

Estimate the pressure change over 80 m of pipeline : Water at 20ºC flows at a velocity of 2 m/s in a 200-mm diameter horizontal ductile-iron pipe. a) Estimate the friction factor in the pipe, and state whether the pipe is hydraulically smooth or rough.

User Account

All Pages