Financing the expansion with its line or credit

Assignment Help Other Subject
Reference no: EM13338495

Ray's Tool and Supply Company of Austin, Texas, has beenexpanding its level of operation for the past two years. The firm'ssales have grown rapidly as a result of the expansion in the Austineconomy. However, Ray's is a privately held company, and the onlysource of available funds it has is a line of credit with thefirm's bank. The company needs to expand its inventories to meetthe needs of its growing customer base but also wishes to maintaina current ratio of at least 3. If Ray's current assets are $6million, and its current ratio is now 4, how much can it expand itsinventories before the target current ratio is violated? (Financing the expansion with its line or credit).

Reference no: EM13338495

Questions Cloud

Reduce its velocity ata pre-calculated point in orbit : The shuttle must reduce its velocity ata pre-calculated point in orbit in order to return to Earth. Forthis maneuver, the shuttle is turned into an attitude with the Orbital Maneuvering System (OMS) nozzles pointing into thedirection of the velocity...
Proprietorship including the basis for cost recovery : laura transfers her personal use automibile to her business. The car's adjusted basis is $20000 and the fair market value is $ 15000. Determine the adjusted basis of the car to Laura's sole proprietorship including the basis for cost recovery.
Contract if global warming caused more rainfall : Which biomes would contract if global warming caused more rainfall in the United States and less rainfall in Africa?
Ethical issues associated with multinational corporations : Why are many international business ethics issuesdifferent from business ethics issues arising in one's owncountry? How can differences intwo countries' cultures create ethical issues inbusiness? Discuss the ethical issues associated with multination..
Financing the expansion with its line or credit : Ray's Tool and Supply Company of Austin, Texas, has beenexpanding its level of operation for the past two years. The firm'ssales have grown rapidly as a result of the expansion in the Austineconomy. However, Ray's is a privately held company, and the..
Important to successful implementation efforts : Listand define the factors that are important to successful implementation efforts?
What are the four approaches to installation : What are the four approaches to installation? which is the most expensive? which is the most risky? How does an organization decide which approach to use?
Statement about currently attainable standards : Identify which statement about "currently attainable standards" is NOT true. Which of the following product promotional activitieswould probably help make the supply chain moreefficient? Which one of the following characteristics would likelybe assoc..
Surplus is typically associated with less than : In a maximal flow problem, the flow capacity on the dummy arcconnecting the destination node to the source node should be set toa very large value? Surplus is typicallyassociated with less than, equal to contraints?

Reviews

Write a Review

Other Subject Questions & Answers

  Supervisor of her practice teaching

Carol likes Dr. Reed, the supervisor of her practice teaching. In fact, Carol often finds herself adopting many of Dr. Reed's methods and mannerisms in the classroom

  Working with children-adolescents and their families

Discuss the issues to be considered in working with children, adolescents, and their families. Critically discuss competence, consent, confidentiality, reporting, competing interests, and documentation.

  Example of product that has successfully been adapted

Give at least one example of a product that has successfully been adapted, repackaged, or otherwise changed to extend that product's life cycle.

  Statements regarding the gestalt movement

Which of the following statements regarding the Gestalt movement is true?

  What are the molar enthalpy

Five grams of the specified pure solvent is placed in a variable piston. What are the molar enthalpy and total enthalpy of the pure system when 75% have been evaporated at 50 degrees celcius.

  Library automation problems

Which library automation problems are being faced to library professionals? Discuss the problems alongwith their solutions.

  Economic trends-post independence liberal era

What were the general economic trends during the post independence Liberal (open-mined) era (period)? And in what ways specifically did your country attempt to build and grow its economy during this time span (period)?

  Organizational project management maturity model

Organizational Project Management Maturity Model developed by Project Management Institute, PMI programme and Project Management Maturity Model, Defined process- institutionalization of the process i.e deployment of the process organisation wide

  Identify an organizational-level goal-financial performance

Identify an organizational-level goal that would be incorporated into an annual business strategy (e.g., financial performance, service, productivity, competitive advantage, innovation.).

  Example of installation art

Describe the artwork you have found in the Main forum, including the title, artist, year created, and where it was installed. Discuss the meaning of the work and how it relates to what the artist has created.

  In many industrial applications-liquid is heated

In many industrial applications, liquid is heated or cooled in a closed vessel and agitated to speed up the heat transfer. The agitation maintains the inside temperature to be fairly uniform, somewhat analogous to the lumped parameter solution descri..

  Draw mass spectrum of pentanoic acid

Draw mass spectrum of pentanoic acid and write its fragmentaion pattern. Answer should should be short and brief and upto the point

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd