What will be the firm quick ratio

Assignment Help Accounting Basics
Reference no: EM133026575

Question - The Nelson Company has $1,430,000 in current assets and $550,000 in current liabilities. Its initial inventory level is $400,000, 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 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar.

What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM133026575

Questions Cloud

What would be the percentage rate of return : The current market price for common shares of Echo Company is $15. What would be the percentage rate of return earned on these put options
What is the resulting productivity ratio : The total output from production system in one day is 710 units & total labor necessary to produce 710 units is 624 hours. What is resulting productivity ratio
Identify and analyse market growth or decline : List the name of 2 websites which you can use as resources to identify and analyse market growth or decline.
Howard written employment contract : Howard's written employment contract was for a five-year term and it did not contain a termination clause.
What will be the firm quick ratio : What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations
What are the sources of resistance : Before, you were working in a functional structure. Now, every employee is going to report to a team leader as well as a department manager.
Thinking about an international company like kfc : You are required to prepare a risk management plan for a department or a project in a real or fictitious company (a simulated case) to show evidence that y
OUbs003224 Investment Management Assignment : OUbs003224 Investment Management Assignment Help and Solution, Open University of Mauritius - Assessment Writing Service
Calculate your total dollar return for the year : Question - At the start of the year, you purchase 200 shares of Manor Corporation at $25 per share. Calculate your total dollar return for the year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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