{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T01:12:34-04:00", "answer_date": "2024-06-06 01:12:34", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2330253", "url": "\/study-help\/questions\/current-and-quick-ratios-the-nelson-company-has-1365000-in-2330253", "question_creation_date_js": "2024-06-06T01:12:34-04:00", "question_creation_date": "Jun 06, 2024 01:12 AM", "meta_title": "[Solved] Current and Quick Ratios The Nelson Compa | SolutionInn", "meta_description": "Answer of - Current and Quick Ratios The Nelson Company has $1,365,000 in current assets and $525,000 in current liabilities. Its | SolutionInn", "meta_keywords": "current,quick,ratios,nelson,company,$1,365,000,assets,$525,000,liabilities,initial,inventory,level", "question_title_h1": "Current and Quick Ratios The Nelson Company has $1,365,000 in current assets and $525,000 in current liabilities. Its initial inventory level is $262,500, and it", "question_title": "Current and Quick Ratios The Nelson Company has $1,365,000 in current assets", "question_title_for_js_snippet": "Current and Quick Ratios The Nelson Company has $1,365,000 in current assets and $525,000 in current liabilities Its initial inventory level is $262,500, and it will raise funds as additional notes payable and use them to increase inventory How much can Nelson's short term debt (notes payable) increase without pushing its current ratio below 2 2 Round your answer to the nearest cent What will be the firm's quick ratio after Nelson has raised the maximum amount of short term funds Round your answer to two decimal places ", "question_description": "

Current and Quick Ratios<\/p>

The Nelson Company has $1,365,000 in current assets and $525,000 in current liabilities. Its initial inventory level is $262,500, and it will raise funds as additional notes payable and use them to increase inventory.<\/p>

  1. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Round your answer to the nearest cent.<\/li>
  2. What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round your answer to two decimal places.<\/li> <\/ol>", "transcribed_text": "", "related_book": { "title": "Managerial Accounting", "isbn": "9781119158226, 111915801X, 1119158222, 978-1119158011", "edition": "6th edition", "authors": "James Jiambalvo", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1327.jpg", "uri": "\/textbooks\/managerial-accounting-6th-edition-1327", "see_more_uri": "" }, "free_related_book": { "isbn": "B00KFMSLMW", "uri": "\/textbooks\/recent-advances-in-financial-engineering-proceedings-of-the-2008-daiwa-international-workshop-on-financial-engineering-1st-edition-b00kfmslmw-310904", "name": "Recent Advances In Financial Engineering Proceedings Of The 2008 Daiwa International Workshop On Financial Engineering", "edition": "1st Edition" }, "question_posted": "2024-06-06 01:12:34", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/following-are-the-income-statement-for-2010-and-the-balance", "description": "Following are the income statement for 2010 and the balance sheets at year-ends 2009 and 2010 for Allied Enterprises Inc. a. 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