How much can a companys short-term debtnotes payable


The company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can a company's short-term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Nelson has raise the maximum amount of short-term funds?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: How much can a companys short-term debtnotes payable
Reference No:- TGS0601881

Expected delivery within 24 Hours