Task1. Triton Beverage has the following historical balance sheet:
Cash: $20
Account Rec $240
Inventory $320
Total current assets $580
Net Plant and equipment: $420
Total assets: $1,000
Accounts payable: $200
Notes payable: $130
Accruals: $30
Current liabs $360
Long term bonds $260
Common Stock $270
Retained Earnings $110
Total liab and equity: 1,000
Over the next year Triton’s currents assets, accounts payable, and accruals will grow in proportion to sales. Last year's sales were $800 and this year's sales are anticipated to rise by 40%. The firm will retain $58 in earnings to fund current asset growth, and the rest of the raise will be funded entirely with notes payable. The net plant and equipment account will rise to $500 and will be funded directly by a new equity issue. What will Triton’s new current ratio be after alters in the firm's financial picture are complete?
1. Please explain (display) and show the steps to your solution.