Airspot Motors, Inc. has $2,145,000 in current assets and $858,000 in current liabilities. The companys managers want

Question:

Airspot Motors, Inc. has $2,145,000 in current assets and $858,000 in current liabilities. The company’s managers want to increase the firm’s inventory, which will be financed using short-term debt. How can the firm increase its inventory without its current ratio falling below 2.0 (assuming all other current assets and current liabilities remain constant)?


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

Question Posted: