The Nelson Company has $1,302,000 in current assets and $465,000 in current liabilities. Its initial inventory level

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

Question:

The Nelson Company has $1,302,000 in current assets and $465,000 in current liabilities. Its initial inventory level is $305,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 2.0? Do not round intermediate calculations. Round your answer to the nearest dollar. $________

What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.