At the end of last year, Bralnerd & Co. had a quick ratlo of 1.4, a current ratio of 3.0, a days sales

outstanding (DSO) of 36.5 days (based on a 365-day year), total current assets of $810,000 and cash

of $120,000. Its current assets consist of cash, accounts recelvable, and Inventory. Assume that the

level of current assets and current labilities were stable throughout the year.

Please calculate last year amounts for Bralnerd's'

1. Current llabilitles.

2. Inventory

3. Accounts receivable.

4. Sales

5. Brainerd plans to borrow short-term funds from a bank (notes payable) and use these funds to

Immediately purchase additional Inventory. The bank, however, Imposes a covenant on this loan,

requiring Brainerd's current ratio not to fall below 2.5. How much short-term bank debt (I.e.,

Notes Payable or NP) can Brained borrow without pushing its current ratio below 2.5?

(Note: For each question, please show detalled explanations as to how you proceed to your answer

along with detailed calculations).