How much can nelsons short-term debt notes payable increase


The Nelson Company has $ 1,312,500 in current assetsand $ 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 increaseinventory. How Much can Nelson's short-term debt (Notes Payable) increase withoutpushing its current ratio below 2.0? What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?

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