Halen Inc. has a current ratio of 2.4 times on current liabilities of $800,000. If Halen has $300,000 worth of inventories, what is the firm's quick ratio?

2.03 times 1.83 times 1.53 times 1.73 times 1.63 times

Halen is considering an expansion that would require a rapid increase in its inventories. The firm will issue short-term debt (notes payable) and use those funds to buy new inventories. Halens bond contracts stipulate that it must maintain a quick ratio of at least 1.2 times, or else it is in default. How much new inventory can Halen raise before it violates its bond contracts?

$600,000 660,000 550,000 820,000 446,154 If Halen follows through with this expansion plan, what will its new current ratio be?

1.89 times 1.83 times 2.09 times 1.58 times 1.44 times

Which current asset is generally considered to be the least liquid?

A. Cash B. Accounts Recievable C. Inventories

Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders is more likely to care about a firm's liquidity ratios, short-term fo long-term lenders?

A. Long-term lenders B. Short-term lenders