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The Nelson Company has $1,470,000 in current assets and $525,000 in current liabilities. Its initial inventory...

The Nelson Company has $1,470,000 in current assets and $525,000 in current liabilities. Its initial inventory level is $367,500, 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 1.6? Round your answer to the nearest cent.

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum ー E ゴWrap Text ta copy. B า 프 . Ej-., Δ. : r_一 逻锂函Merge & Center. $, % , 弼,8 Paste Conditional Format CeInsert Delete Format Formatting, as Table w styles. ▼ ㆆ ▼ Sort &Find & 2 ClearFe Select Edting Format Painter Clipboard Font Alignment Number Cells BM42 BJ BK BL BM BN BO BP BQ BR BS BT BU BV BW BX 30 31 32 CURRENT RATIO = CURRENT ASSETS/CURRENT LIABILITIES NOTE INVENTORY IS TO BE FINANCED WITH SHORT TERM NOTE SO ADDITIONAL INVENTORY & SHORT TERM NOTE BOTH WILL BE EQUAL TO X 1.6(1470000 X)/(525000X) 16(525000 + X) = 1470000 + X 8400001.6 (X) 1470000 X 0.6 (x) 34 35 36 37 38 39 40 41 42 43 630000 1050000 SWER 1050000.00 45 46 47 48 | .. CASH BUDGET 45 BV MV ratio VARIANCEBEP, OL FL ratios B-S loss SALES BUDGET DİFF ANALYSIS- overhead float | ORDER E 09:22 22-01-2019

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