Question
Current Ratio The Petry Company has $776,500 in current assets and $310,600 in current liabilities. Its initial inventory level is $155,300, and it will raise
Current Ratio
The Petry Company has $776,500 in current assets and $310,600 in current liabilities. Its initial inventory level is $155,300, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0? Round your answer to the nearest cent.
$
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Finance For Managers
Authors: Harvard Business School Press
1st Edition
1578518768, 978-1578518760
