Question
Airspot Motors, Inc. has $2,215,200 in current assets and $852,000 in current liabilities. The company's managers want to increase the firms inventory, which will be
Airspot Motors, Inc. has $2,215,200 in current assets and $852,000 in current liabilities. The company's managers want to increase the firms inventory, which will be financed using short term debt. How much can the firm increase its inventory without its current ratio falling below 2.1 (assuming all other current assets and current liabilities remain constant)?
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Real Estate Investment Strategies Structures Decisions
Authors: David Hartzell, Andrew E. Baum
2nd Edition
1119526094, 978-1119526094
