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  3. current and quick ratios the nelson company has $

Current and Quick Ratios The Nelson Company has $1,162,500 in current assets and $465,000...

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Accounting

Current and Quick Ratios
The Nelson Company has $1,162,500 in current assets and $465,000 in
current liabilities. Its initial inventory level is $335,000, 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 1.8? 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.
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