Current Assets = $2419200
Current Liabilities = $864000
Current Ratio = Current Assets / Current Liabilities
Let the inventories be increased by x
Hence, Current Liabilities = 864000+x
We need the current ratio to be more than 2.2
Hence, 2.2 = 2419200/(864000+x)
=> x = 2419200/2.2 - 864000 = 235636
Hence, Airspot Motors can add upto $235,636 in inventories
(Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,419,200 in current assets and $864,000...
(Related to Checkpoint 4.1) (Liquidity analysis) Airspot Motors, Inc. has $2,419,200 in current assets and $864,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.2 (assuming all other current assets and current liabilities remain constant)? Airspot Motors, Inc. could add up to $ in inventories. (Round to the nearest dollar.)
Question 3. (10 points total) (Liquidity analysis) Airspot Motors, Inc. has $2,433,200 in current assets and $869,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.1 (assuming all other assets and current liabilities remain constant)? (Round to one decimal place.)
Aylward Inc. currently has $2,134,000 in current assets and $832,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.1 ? The cost of the additional inventory financed with the short-term note is======(Round to the nearest dollar.)
Aylward Inc. currently has $2,175,000 in current assets and $839,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.1? The cost of the additional inventory financed with the short-term note is? -----(Round to the nearest dollar.)
Aylward Inc. currently has $2,175,000 in current assets and $839,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.12.1? The cost of the additional inventory financed with the short-term note is -----(Round to the nearest dollar.)
Firm XXX has $4.5 million in current assets and 3.7 million in current liabilities. The firm wants to increase its inventory, which will be financed by a short term note with the bank. What level of inventories can the firm carry without its current ratio falling below 1.1? Firm XXX has $4.5 million in current assets and 3.7 million in current liabilities. The firm wants to increase its inventory, which will be financed by issuing a 3-year bond. What level...
Q1) Firm XXX has $4.5 million in current assets and 3.7 million in current liabilities. The firm wants to increase its inventory, which will be financed by a short term note with the bank. What level of inventories can the firm carry without its current ratio falling below 1.1? Q2) Firm XXX has $4.5 million in current assets and 3.7 million in current liabilities. The firm wants to increase its inventory, which will be financed by issuing a 3-year bond....
Firm XXX has $4.5 million in current assets and 3.7 million in current liabilities. The firm wants to increase its inventory, which will be financed by a short term note with the bank. What level of inventories can the firm carry without its current ratio falling below 1.1?
Q1) Firm XXX has $4.5 million in current assets and 3.7 million in current liabilities. The firm wants to increase its inventory, which will be financed by a short term note with the bank. What level of inventories can the firm carry without its current ratio falling below 1.1?
18-2. (Related to Checkpoint 18.1 on page 573) (Measuring firm liquidity) The following table contains current asset and current liability balances for Microsoft Corporation (MSFT) 2008 2007 2006 Cash and cash equivalents 6,714,000 10,339,000 6,111,000 Short-term investments 13,323,000 17.300,000 27,447,000 Net receivables 15,606,000 13,237,000 11,256,000 Inventory 985,000 I,127,000 1,478,000 2.393,000 40,168,000 Other current assets 2.989,000 43,242,000 2.115.000 49,010,000 Total current assets Accounts payable Short-tem/current long-term debt 12,830,000 6,612,000 9,521,000 2,741,000 Other current liabilities 17,056,000 29,886,000 12.921,000 22.442,000 14.401,000 23,754,000 Total...