Question
Hansen's Auto Supply has $903,000 in current assets and $308,000 in current liabilities. Its initial inventory level is $440,000, and it will raise funds as
Hansen's Auto Supply has $903,000 in current assets and $308,000 in current liabilities. Its initial inventory level is $440,000, 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 it's current ratio below 2.1?
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
