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liquidity analysis... firm had total current assets of 1778333700 and current liabilities of 1367949000... have current ratio need b and c answered a- if a
liquidity analysis... firm had total current assets of 1778333700 and current liabilities of 1367949000... have current ratio need b and c answered a- if a firm were to expand its investemnts in inventory and fianance the expamsion by increasing accounts payable how much could it increase its inventory without reducing the current ratio below 1.2 question b- if they needed to raise the current ratio by 1.5 by reducing its investment in current assets and simultanously reducing accounts payable and short term debt how much would it have to reduce current assets to accomplish this goal
Liquidity analysis) When firms enter into loan agreements with their bank, It is very common for the agreement to hve a restriction on the minimum current ratio the firm has to maintain aware of the effects of their decisions on the current ratio Consider the situation of Advanced Autoparts (AAP) in 2009. The firm had total current assets of S1,778,333,700 and current fiat a. What is the firm's current ratio? b. If the firm were to expand its investment in inventory and finance the expansion by increasing accounts payable, how much could it increase its inventory without reducing the current ratiu c. Il the company needed to raise its current ratio to 1.5 by reducing its investment in current assets and simultaneously reducing accounts payable and short-term dett, how much would accomplish this goal? a. What is the firm's current ratio? The firm's current ratio is (Round to one decimal place) Step by Step Solution
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