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please help with parts B & C.... I am having trouble, thank you (Liquidity analysis) When firms enter into loan agreements with their bank, it

please help with parts B & C.... I am having trouble, thank you image text in transcribed
(Liquidity analysis) When firms enter into loan agreements with their bank, it is very common for the agreement to have a restriction on the minimum curren ratio the firm has to maintain. So, it is important that the firm be 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 $1,780,712,700 and current liabilies of $1,369,779,000. 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 payablo, how much could it increase its inventory without reducing the current ratio below 1.2 ? c. If the company noeded to raise its current ratio to 1.5 by reducing its investment in current assets and simultaneously reducing accounts payable and short-term debt, how much would it have to reduce current assets to accomplish this goal? a. What is the firm's current ratio? The firm's current ratio is (Round to one decimal place) b. If the firm were to expand its investment in inventory and finance the expansion by increasing accounts payablo, how much could it increase its inventory without reducing the current ratio below 1.2 ? The additional amount of inventories (accounts payable) that the company can take is \& (Round to the nearest dollar.) (Liquidity analysis) When firms enter into loan agreements with their bank, it is very common for the agreement to have a restriction on the minimum curren ratio the firm has to maintain. So, it is important that the firm be 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 $1,780,712,700 and current liabilies of $1,369,779,000. 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 payablo, how much could it increase its inventory without reducing the current ratio below 1.2 ? c. If the company noeded to raise its current ratio to 1.5 by reducing its investment in current assets and simultaneously reducing accounts payable and short-term debt, how much would it have to reduce current assets to accomplish this goal? a. What is the firm's current ratio? The firm's current ratio is (Round to one decimal place) b. If the firm were to expand its investment in inventory and finance the expansion by increasing accounts payablo, how much could it increase its inventory without reducing the current ratio below 1.2 ? The additional amount of inventories (accounts payable) that the company can take is \& (Round to the nearest dollar.)

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