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QUESTION
foxtrot company has $1,312,500 in current assets and $525,000 in current liabilities.
foxtrot company has $1,312,500 in current assets and $525,000 in current liabilities. The commpany's initial inventory level is $375,000, and it will issue notes payable anduse the proceeds to increase inventory.How much can foxtrot's short-term debt(notes payable) increase without pushing its current ratio below 2.0? What will be the firm's quick ratio after Foxtrot has raised the maximum amount of short-term funds?
