he Nelson Company has $1,170,000 in current assets and $450,000 in current liabilities. Its initial inventory level is $280,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Do not round intermediate calculations. Round your answer to the nearest dollar. $ 150,000 What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.

Answers

Answer 1

The quick ratio after Nelson has raised the maximum amount of short-term funds will be 1.48.

What is quick ratio?

The quick ratio (also known as the acid-test ratio) is a measure of a company's short-term liquidity. It is calculated by dividing a company's total assets minus its inventory by its current liabilities. This ratio reveals a company's ability to pay its current liabilities with its most liquid assets. A quick ratio of 1:1 or higher is generally considered a sign of a financially healthy company, while a ratio lower than 1:1 may indicate that a company lacks the necessary liquidity to pay its current liabilities.

The quick ratio is calculated by dividing the sum of cash, cash equivalents, and marketable securities by the total current liabilities.

In this case, the total current liabilities will be $450,000 + $150,000 = $600,000.

The sum of cash, cash equivalents, and marketable securities will be $1,170,000 - $280,000 = $890,000.

The quick ratio will be $890,000 / $600,000 = 1.48.

To learn more about quick ratio

https://brainly.com/question/28624468

#SPJ1


Related Questions

Why do lending and credit card companies use a borrower's Social Security number when opening an account?

Answers

Answer:

Most card issuers in the United States will request credit card applicants to provide a Social Security number (SSN). This helps credit card companies prevent fraud and protects the general public from identity theft.

Explanation:

if it helped you please mark me a brainliest :))

Lending and credit card companies use a borrower's Social Security number as a unique identifier to verify their identity and maintain accurate records, and to evaluate their creditworthiness.

What are the lending and credit card?

Lending refers to the practice of providing money or other resources to an individual or organization, typically in the form of a loan, with the expectation that the borrower will repay the amount with interest over a set period of time.

Lending can take various forms, including personal loans, mortgages, auto loans, and business loans, among others. Lending institutions, such as banks, credit unions, and online lenders, provide these types of loans.

A credit card, on the other hand, is a type of revolving credit that allows individuals to borrow money up to a certain limit, typically based on their creditworthiness, and use it to make purchases or pay bills.

The borrower is required to make at least a minimum payment each month and can choose to carry a balance from month to month, with interest charged on the outstanding balance. Credit cards are typically issued by banks or other financial institutions, and may come with various rewards or benefits, such as cashback or points for purchases.

Learn more about credit card here:

https://brainly.com/question/6780476

#SPJ2

Which process includes determining the project’s course of action?

Answers

Answer:

I think it's the Control Scope Process.

If I got it right...

MARK ME AS BRAINLIEST...

can I get a detailed explanation about accounting in grade 9 term 1​

Answers

Answer:

Accounting Equation: The accounting equation is a fundamental concept in accounting. It states that assets equal liabilities plus equity. This means that everything a company owns (assets) is either financed by what it owes (liabilities) or by what its owners have put in (equity).

Double-Entry Accounting: Double-entry accounting is a system where every financial transaction has two equal and opposite entries, one on the debit side and one on the credit side. This system is used to ensure that the accounting equation remains balanced.

Financial Statements: Financial statements are reports that show the financial performance and position of a company. The three main financial statements are the balance sheet, income statement, and statement of cash flows.

Recording Transactions: Transactions are recorded in journals, which are then posted to ledgers. Journals record transactions in chronological order, while ledgers organize transactions by account.

Types of Accounts: Accounts can be categorized as assets, liabilities, equity, revenue, and expenses. Assets are resources that a company owns and can use to generate future economic benefits. Liabilities are obligations that a company owes to others. Equity represents the residual interest in the assets of a company after liabilities are deducted. Revenue is money earned by a company from its primary business activities. Expenses are the costs incurred in earning revenue.

These are just a few of the concepts that you may learn in grade 9 accounting. Accounting can be a challenging subject, but with practice and dedication, you can master it.

Explanation:

Need this done fast. Help.

Answers

1. The well-known company McDonald's brand promise is to provide fast, affordable, and reliable food to their customers.

What is food ?

Food is any substance consumed to provide nutritional support for an organism. It is usually of plant or animal origin, and contains essential nutrients, such as carbohydrates, fats, proteins, vitamins, or minerals. The substance is ingested by an organism and assimilated by the organism's cells to provide energy, maintain life, or stimulate growth.

2a. The type of company I would like to work for or start up myself is a home decor store. 2b. Company's target customers could be grouped into two categories. 2c. The company could treat these two categories of customers differently by offering discounts.d.Type of channel management described in questions 2b and 2c is not likely to lead to unfair treatment .

To learn more about food

https://brainly.com/question/28155051

#SPJ1

Other Questions
can yall help me with this i cant even solve this with a calculator The graph shows the responses of 120 students who were asked whether they spend too much or too little time watchingtelevision.Television ViewingToo little 30%Aboutright 5%Too much 20%Don't know 45%How many thought they watched too much television?a.6 studentsb. 24 studentsc. 28studentsd. 36 students ssume that the economy can experience four possible states: high growth, normal growth, recession, or depression. For each of those states, you expect the following stock market returns for the coming year:State of the Economy Probability ReturnHigh Growth 0.2 35%Normal Growth 0.6 15%Recession 0.15 -10%Depression 0.05 -15%In dollar terms, what is the value at risk (over a one-year horizon at a 5 percent probability) associated with a $1,000 investment?The value at risk: $____ The site that you named in question 1. 5 can be classified as a primary attraction. By refering to the distance table in Annexure B,describe Two other activities that are also available for tourists as secondary attractions Imagine that youre studying the relationship between newborns weight and length. You have the weights and lengths of the 10 babies born last month at your local hospital. Calculate the r for this sample. maintaining competitive and equitable salaries and benefits among the various operations of the organization is one component involved in managing the problem of . I. Sabine PassII. Palmito RanchIII. Red River campaignIV. GalvestonWhat is the correct sequence for the above battles in the Civil War? Show that the number is a zero of f(x) of the given multiplicity, and express f(x) as a product of linear factors.f(x) = x^6 12x^5 + 45x^4 405x^2 + 972x 729; 3 (mult. 5) Which of the following questions would be relevant to conducting a building's life-cycle assessment? (Selectall that apply.)A. What is the cost of the building?B. Will the building be operated by a foreign-owned corporation?C. Will the building generate any pollution?D. How long is the building expected to last? Completely factor the expression below. 4x^ 2 + 14x + 10 # 16 iYou are given that ZYZW and ZZYX are right angles. What additional piece of information allows you to prove that AWYZAXZY?WNOYZ ZYO WY XZO WZ|XYO ZYLXYPrevious11 1213141516 17 18 19 20Next what is a nonrenewable resource ?A- natural resource that is replaceableB- natural resource that is limited in supply C- existing materials that are captured through using the heat of earthD- alternative energy forms like solar energy and wind power that can be recycled A. DIRECTIONS: Underline each noun phrase in these examples from "The FourFreedoms. " Some sentences will have more than one noun phrase. If there is a nounphrase within a noun phrase, make the shorter one bold. |1. Armed defense of democratic existence is now being gallantly waged infour continents. 2. We need not overemphasize imperfections in the Peace of Versailles. 3. No one can tell the exact character of the emergency situations that we maybe called upon to meet. 4. Just as our national policy is this. 5. A free nation has the right to expect full cooperation from all groups. CAN SOMEONE HELP WITH THIS QUESTION? Describe the problems that the Democratic Republic of the Congo struggled with after gaining independence.PLEASE HURRY DUE RIGHT NOW Find the value of x. 20 degrees and 114 degrees Por favor ayuden, este es 40 puntos, les doy brainliest!! please help, this is worth 40 points and ill give brainliest!! Hoy vamos a compartir nuestras ideas acerca del poema de JosJoaqun Olmedo, La victoria de Junn (Canto a Bolvar).responde a dos o tres preguntas. Es importante ser especfico y referirse al poemay al material de la leccin. Por que escribi Olmedo, un ecuatoriano, sobre el venezolano Bolivar?Fue Bolivar el nico responsable de la liberacin de Sudamrica?Para que sirven los poemas picos? What does Frankenstein do to the transcript that Robert Walton has made of Frankensteins narrative? Answer Choices:A. After reading the transcript, Frankenstein made no change to it.B. After reading the transcript, Frankenstein corrected and augmented it.C. After reading the transcript, Frankenstein ripped it up and threw the pieces into the sea.D. After reading the transcript, Frankenstein folded it up and mailed it to a newspaper.E. After reading the transcript, Frankenstein read it out loud to the entire crew of the ship. Solve please I dont have the book its due Monday The focus of ISO 9000:2008 is to ________.A) encourage the adoption of total quality management in EuropeB) reward European firms that embrace quality management techniquesC) provide a standardized format for firms to document their quality systems in order to facilitate tradeD) teach European firms the importance of quality managementE) provide a framework for organizational improvement and change