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QUESTION
The Manning Company has $1,365,000 in current assets and $525,000 in current liabilities.
The Manning Company has $1,365,000 in current assets and $525,000 in current liabilities. Its initial inventory level is $262,500, and it will raise funds as additional notes payable and use them to increase inventory.
- How much can Manning's short-term debt (notes payable) increase without pushing its current ratio below 2.2? Round your answer to the nearest cent.
- What will be the firm's quick ratio after Manning's has raised the maximum amount of short-term funds? Round your answer to two decimal places.
