Question
Hansen's Auto Supply has $1,021,000 in current assets and $420,000 in current liabilities. Its initial inventory level is $390,000, and it will raise funds as
Hansen's Auto Supply has $1,021,000 in current assets and $420,000 in current liabilities. Its initial inventory level is $390,000, 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 2.3?
| a. | $145,652 | |
| b. | $55,000 | |
| c. | $23,913 | |
| d. | $42,308 | |
| e. | $257,692 |
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Crisis Risk And Stability In Financial Markets
Authors: Juan Fernández De Guevara Radoselovics , José Pastor Monsálvez
1st Edition
1137001828, 978-1137001825
