What will be the firm quick ratio

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Question - The Nelson Company has $1,187,500 in current assets and $475,000 in current liabilities. Its initial inventory level is $320,000, 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? What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?

Reference no: EM133058158

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