Answered step by step
Verified Expert Solution
Question
1 Approved Answer
New Inc. is a battery manufacturing firm. It has cash of $50,000, accounts receivable of $520,000 and inventory of $175,000. The company has no other
New Inc. is a battery manufacturing firm. It has cash of $50,000, accounts receivable of $520,000 and inventory of $175,000. The company has no other current assets. The company has accounts payable of $80,000 and short-term debt of $125,000. It has no other current liabilities. The company is going to borrow some money and buy some additional inventory. The company does not want its current ratio to be lower than 2.7. What is the amount of additional money the company can borrow?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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