Question: ABC Inc's current quick ratio is %40, it total current asset is 625,000, and its current liability is $575,000. The new CFO want to establish

ABC Inc's current quick ratio is %40, it total current asset is 625,000, and its current liability is $575,000. The new CFO want to establish a quick ration of 80%.The current asset and current liability of the firm will not change. how much inventories must the company subtract to achieve the target quick ration ? ( answer to nearest cents )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Need help with both problems 22 21. 4pt- Your corporation has the following cash flows: Operating income Interest received Interest paid Dividends received Dividends paid $250,000 10,000 $45,000...

quired information his mini-case you will complete the preliminary analytical procedures for the 2016 audit of EarthWear Clothiers, Inc. EARTHWEAR CLOTHIERS Common-size Consolidated Balance Sheet On...

This is a CLC assignment. Analyze a publicly traded company's financial statements for the prior five years. Include the following items as supplemental schedules to the analysis, prepared as...

INCOME STATEMENT INFO Sales Cost of Goods Sold Other Expenses Depreciation Interest Expense Tax Bracket 28% Common Stock Outstanding Preferred Stock Dividends Price Per Share of Stock = $35.50...

an 12. If a company sells additional common stock and uses the proceeds to increase its inventory level and to increase its cash balances, what is the near-term (immediate) impact (increase,...

444 12:27 AM + Expert Q&A + Case 1 Part 2 Financial Statements, Ratios and Financial Planning Analysis Warren Manufacturing, Inc. In addition to the information provided in Part 1 Larissa believes...

financial SUBDOMAINS: 325.4 COMMUNICATING EFFECTIVELY IN ORGANIZATIONS 326.1 MANAGING INTERNAL COST & CONTROLLING FINANCES 326.2 MANAGING CAPITAL & FINANCIAL ASSETS 326.4 MANAGING ENTERPRISE RISK &...

CF identity to check out Us Q2. Using the following financial statements for Pamplin Inc.: (8 Points) BALANCE SHEET FOR YEAR 2012 and 2013 (*000 S) ASSETS Cash $ 200 Account Receivable 450 Inventory...

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

MGMT 640 Midterm Exam Ques. 1) Which of the following is not an advantage of the corporate form of business organization? a. Sell debt or equity in public capital markets b. Owners have limited...

The marginal revenue of the 700th unit is $_____ and demand is __________ at this point. 20; elastic 20; inelastic 15; elastic 15; inelastic

According to Ohm's Law, the voltage drop V (measured in volts V) around a circuit is given by the current I (measured in amps A) flowing through the circuit and the total resistance R (measured in...

Other things being equal, a bond with sinking fund will have lower coupon rate than true a bond without sinking fund. false

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.