Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with these problems (Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,225,600 in current assets and $856,000 in current liabilities.
I need help with these problems
(Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,225,600 in current assets and $856,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.2 (assuming all other current assets and current liabilities remain constant)? Airspot Motors, Inc. could add up to $ in inventories. (Round to the nearest dollar) (Related to Checkpoint 4.1) (Liquidity analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here: a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. b. Benchmark ratios for the current and acid-test (quick) ratio are 1.48 and 1.23, respectively. What can you say about the liquidity of Raconteur's operations based on these two ratios? a. Calculate Raconteurs' current ratio and acid-test (quick) ratio. Raconteurs' current ratio is (Round to two decimal places) X Current assets Cash and marketable securities $9.9 Accounts receivable $40.5 Inventory $59.1 Total current assets $109.5 Current liabilities Accrued wages and taxes $5.1 Accounts payable $34.4 Notes payable $29.1 Total current liabilities $68.6 (Click on the icon in order to copy its contents into a spreadsheet) Done Data table Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started