What will be the firm quick ratio

Assignment Help Finance Basics
Reference no: EM13263165

The company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can a company's short-term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Nelson has raise the maximum amount of short-term funds?

Reference no: EM13263165

Questions Cloud

Design of a shunt regulator fed from a 15 volts supply : a zener diode exhibits a constant voltage of 5.6 volts for currents greater than five times the knee current.Izk is specified to be 1 ma. the zener is to be used in the design of a shunt regulator fed from a 15 volts supply .
What is the annual implied interest of a five-year : Zero-coupon bond. What is the annual implied interest of a five-year zero-coupon bond (using the semiannual pricing convention) with a yield to maturity of 9% and a par value of $1,000?
At what rate is entropy being generated due to tidalfriction : As a result of the friction of tides, the earth rotates more slowly as time progresses. Each year the time it takes for the earth to complete one rotation increases by 20microseconds. at what rate [J/(yr*K)] is entropy being generated due to tidal ..
Effect of arsenate on cells undergoing glycolysis : It is unstable and spontaneously hydrolyzes to form 3-phosphoglycerate, as shown below. What is the effect of arsenate on cells undergoing glycolysis?
What will be the firm quick ratio : How much can a company's short-term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Nelson has raise the maximum amount of short-term funds?
How much dividends was paid to shareholders during the year : In its most recent financial statements, company reported $50 million of net income and $810 mil of retained earning. The previous retained earnings were $780 mil. How much dividends was paid to shareholders during the year?
Draw the circuit diagram for a moore type state machine : There are to be 15 states, and the device for utilization is a 22v10 chip using 8 flip flops internal to the device. The outputs are 8 LEDs and a secondary output Z that is a 1 if states 10,11,12,13 are active.
At what tax rate would an investor be indifferent : Corporate bonds issued by a corporation currently yield 8%. Municipal bonds of equal risk currently yield 6%. At what tax rate would an investor be indifferent between these two bonds?
Compute her new rotation frequency : A 45kg figure skater is spinning on the toes of her skates at 0.50rev/s . Her arms are outstretched as far as they will go. In this orientation, What is her new rotation frequency, in revolutions per second

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the horizon value given the company

what is the horizon value given the company has historical growth of 3% and a discount rate of 10%? (answers in $millions)

  50-50 partnership

Hanna and Molly form a 50-50 partnership, each contributing $75,000. The partnership buys as an investment a portfolio of non-dividend paying corporate stock. After 10 years, during which the partnership continues the original portfolio, the portfoli..

  Compute the npv of the project based on the expected cash

Aston Technologies is bringing a new product to market. It will require an investment of $200,000 today. The firm expects to sell 1,000 units per year at $26 each, for the next twenty years. Expenses are zero, and you can ignore taxes. The rel..

  Questions related to bond basics

Multiple choice questions using bond basics - Which of the following bonds is secured by a lien on real property?

  Strategies for testing internal controls

Discuss and explain three strategies for testing internal controls when information technology is used for significant accounting processing.

  Studying exposure to political risk

Determine procedure you recommend for a multinational corporation in studying exposure to political risk? What actual strategies can be used to guard against such risk?

  Similarities as well as differences between the goal

Similarities as well as Differences between the goal in throughput costing and Activity Based costing

  Computation of effect of hiring employees

Computation of effect of hiring employees and what should the company do to meet this demand

  Calculate firms expected rate of return

Dothan Corporation stock has a 25 percent chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18 percent return.

  What is the slope of the cml

You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.

  Explain what is the corresponding implied forward rate

According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2011? What is the corresponding implied forward rate

  Compute the net investment required for project

LISP Corporation is considering to buy a new dubber for $50,000. The new equipment will replace an older mixer that has been fully depreciated but has a salvage value of $5,000.

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