Floyd's corporation has $20,000 in current liabilities and $27,000 in current assets. Its initial inventory level is $7,000; and it will rise funds as additional notes payable and use them to increase inventory. How much can Floyd's short-term (notes payable) increase without pushing its current ratio below 1.1 For your answer, round to the nearest 0.01. Do not use the dollar ($)

Floyd's corporation has $20,000 in current liabilities and $27,000 in current assets. Its initial inventory level is $7,000; and it will rise funds as additional notes payable and use them to increase inventory. How much can Floyd's short-term (notes payable) increase without pushing its current ratio below 1.1 For your answer, round to the nearest 0.01. Do not use the dollar ($)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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