How much must they contribute to acheive a current ratio

Reference no: EM13258531

A firm has $660,000 in current assets and $310,000 in current liabilities. The firm has a loan agreement in which it promises to maintain a current ratio of 3.0 or more. If the owners of the company decide to contribute additional equity capital that will be invested in inventory, how much must they contribute to acheive a current ratio of 3.0?

a.) $90,000
b.) $93,000
c.) $345,000
d.) 270,000

Reference no: EM13258531

Questions Cloud

Explain the normal boiling point for h2se is higher : The normal boiling point for H2Se is higher than the normal boiling point for H2S . This can be explained by

Prepare flexible budget : Prepare flexible budget for ABC Manufacturer on production of10,000, 15,000, and 20,000 units

What is the value of ending inventory : There was no inventoryat the beginning of the year. What is the value of ending inventory, assuming the use of direct costing?

Describe any equipment : Analyzing Jobs at Custom Carpet Cleaning As the Office Manager at Custom Carpet Cleaning, Bob Huffman must handle a wide range of responsibilities.

How much must they contribute to acheive a current ratio : If the owners of the company decide to contribute additional equity capital that will be invested in inventory, how much must they contribute to acheive a current ratio of 3.0?

Normal operations of the business : Cash and other assets that are expected to be converted tocash or sold or used up within one year or less through the normal operations of the business are called __________.

What is the overall magnification of the lens combination : A converging lens of focal length f1=11.0 cm is placed 52.0 cm to the left of a converging lens of focal length f2 = 22.0 cm. What is the overall magnification of the lens combination

Evaluate and discuss how the families subscribe traditions : In 1,000-1,500 words discuss the usefulness of applying a heritage assessment in evaluating the needs of the whole person, summarize what you learned from the Heritage Assessment Tool.

Tabular summary of effects of alternative actions : Complete the tabular summary of the effects of the alternativeactions on the company's stockholders' equity, outstanding shares,and book value per share.

User Account

All Pages