Question
Airspot Motors, Inc. has $2,256,800 in current assets and $868,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be
Airspot Motors, Inc. has $2,256,800 in current assets and $868,000 in current liabilities. The company's managers want to increase the firm's 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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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
7th Edition
0321122356, 978-0321122353
