Question

Current & Quick Ratios: Ace Industries has current assets equal to $3 million. The company's current...

Current & Quick Ratios:

Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its quick ratio is 1.0. What is the firm's level of current liabilities? What is the firm's kevel of inventories?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Current Asset Ratio = Current Assets / Current Liabilities
1.5 = $ 3 Million / Current Liabilities
Current Liabilities = $ 3 Million / 1.3
Current Liabilities = $ 2 Million
Answer = Current Liabilities = $ 2 Million
Quick Ratio = Current Assets - Inventory / Current Liabilities
1.0            =             $ 3 million - Inventory / $ 2 Million
$ 3 million - Inventory = $ 2 Million X 1 .0
$ 3 million - Inventory = $ 2 Million
Inventory = $ 3 Million - $ 2 Million
Inventory = $ 1 Million
Answer = Inventory = $ 1 million
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Current and Quick Ratios Ace Industries has current assets equal to $2 million. The company's current...
Current and Quick Ratios Ace Industries has current assets equal to $2 million. The company's current ratio is 2.0, and its quick ratio is 1.5. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $ Inventories: $
Ace Industries has current assets equal to $3 million. The company's current ratio is 2.0, and...
Ace Industries has current assets equal to $3 million. The company's current ratio is 2.0, and its quick ratio is 1.7. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar. Current liabilities: $    Inventories: $   
eBook Problem 3-9 Current and Quick Ratios The Nelson Company has $1,687,500 in current assets and...
eBook Problem 3-9 Current and Quick Ratios The Nelson Company has $1,687,500 in current assets and $675,000 in current liabilities. Its initial inventory level is $472,500, 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 1.8? Round your answer to the nearest cent. $   What will be the firm's quick ratio after Nelson has raised the maximum amount of...
eBook Problem 3-9 Current and Quick Ratios The Nelson Company has $1,755,000 in current assets and...
eBook Problem 3-9 Current and Quick Ratios The Nelson Company has $1,755,000 in current assets and $650,000 in current liabilities. Its initial inventory level is $325,000, 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 1.2? Round your answer to the nearest cent. $ What will be the firm's quick ratio after Nelson has raised the maximum amount of...
Current and Quick Ratios The Nelson Company has $1,260,000 in current assets and $450,000 in current...
Current and Quick Ratios The Nelson Company has $1,260,000 in current assets and $450,000 in current liabilities. Its initial inventory level is $360,000, 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 1.9? Round your answer to the nearest cent. $ What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Round...
The Jamesway Printing Corporation has current assets of $3.5 million. Of this total, $1.2 million is...
The Jamesway Printing Corporation has current assets of $3.5 million. Of this total, $1.2 million is inventory, $0.6 million is cash, $1.0 million is accounts receivable, and the balance is marketable securities. Jamesway has $1.6 million in current liabilities. Round your answers to two decimal places. What are the current and the quick ratios for Jamesway? Current ratio:  x Quick ratio:  x If Jamesway takes $0.2 million in cash and pays off $0.2 million of current liabilities, what happens to its current...
2- Current and Quick Ratios The Nelson Company has $1,650,000 in current assets and $550,000 in...
2- Current and Quick Ratios The Nelson Company has $1,650,000 in current assets and $550,000 in current liabilities. Its initial inventory level is $385,000, and it will raise funds as additional notes payable and use them to increase inventory. A) How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.2? Round your answer to the nearest cent. $ B) What will be the firm's quick ratio after Nelson has raised the maximum amount of...
Current and Quick Ratios The Nelson Company has $1,363,000 in current assets and $470,000 in current...
Current and Quick Ratios The Nelson Company has $1,363,000 in current assets and $470,000 in current liabilities. Its initial inventory level is $330,000, 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...
Current and Quick Ratios The Nelson Company has $1,228,500 in current assets and $455,000 in current...
Current and Quick Ratios The Nelson Company has $1,228,500 in current assets and $455,000 in current liabilities. Its initial inventory level is $330,000, 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 2.0? 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...
Current and Quick Ratios The Nelson Company has $1,260,000 in current assets and $450,000 in current...
Current and Quick Ratios The Nelson Company has $1,260,000 in current assets and $450,000 in current liabilities. Its initial inventory level is $300,000, 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 2.0? Do not round intermediate calculations. Round answer to the nearest dollar. $   What will be the firm's quick ratio after Nelson has raised the maximum amount...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT