Short-term solvency, or liquidity, ratios

Halen Inc. has a current ratio of 2.20 times on current liabilities of $800,000. If Halen has $300,000 worth of inventories, what is the firm's quick ratio? 2.23 times 1.53 times 1.93 times 1.73 times 1.83 times Halen is considering an expansion that would require a rapid increase in its inventories. The firm will issue short-term debt (notes payable) and use those funds to buy new inventories. Halen's bond contracts stipulate that it must maintain a quick ratio of at least 1.30 times, or else it is in default. How much new inventory can Halen raise before it violates its bond contracts? $550,000 $185,714 $454,545 $600,000 $323,077 If Halen follows through with this expansion plan, what will its new current ratio be? 2.09 times 1.58 times 1.85 times 1.90 times 1.70 times