Question: Current assets = $1,406,500 Current liabilities = $485,000 Initial inventory level = $335,000 How much can Nelson's short-term debt (notes payable) increase without pushing its

Current assets = $1,406,500

Current liabilities = $485,000

Initial inventory level = $335,000

How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8?

My answer: $666,875

What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds?

My answer: 0.35 times (which is wrong).

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