Current and Quick Ratios

The Nelson Company has $1,522,500 in current assets and $525,000 in current liabilties. Its initial inventory levle is $262,500, and it will raise funds as additional notes payable and use them to increase inventory.

#1 How much can Nelson's short term debt (notes payable) increase without pushing its current ratio below 2.1? round anwser to nearest cent.

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#2 What will be the firm's quick ratio after Nelson has raised the maximum amount of short term funds? Round anwser to two decimal places.

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