The Nelson Company has $1,620,000 in current assets and $600,000 in current liabilities. Its initial inventory...

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The Nelson Company has $1,620,000 in current assets and $600,000in current liabilities. Its initial inventory level is $480,000,and it will raise funds as additional notes payable and use them toincrease inventory. How much can Nelson's short-term debt (notespayable) increase without pushing its current ratio below 1.7?Round your answer to the nearest cent. $ What will be the firm'squick ratio after Nelson has raised the maximum amount ofshort-term funds? Round your answer to two decimal places.

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Information providedCurrent assets 1620000Current liabilities 600000Initial inventory level 480000Let the additional    See Answer
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The Nelson Company has $1,620,000 in current assets and $600,000in current liabilities. Its initial inventory level is $480,000,and it will raise funds as additional notes payable and use them toincrease inventory. How much can Nelson's short-term debt (notespayable) increase without pushing its current ratio below 1.7?Round your answer to the nearest cent. $ What will be the firm'squick ratio after Nelson has raised the maximum amount ofshort-term funds? Round your answer to two decimal places.

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