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John Roe is attempting to categorize several items from his company's financial statements so he can determine his working capital. Joe notices the following categories of accounts and amounts: cash, $3387; accounts payable, $10618; accounts receivable, $15151; sales taxes due city of Phoenix, $991; sales taxes due the Arizona Department of Revenue, $3911; inventory, $16752; wages payable, $5250; taxes payable (federal), $2592; money market fund, $12582; and computer, $3462.
Problem 1: What is the Current Ratio?
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Explain Why would a higher inflation target result in a higher average level of interest rates? Higher inflation, once experienced.
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