Question

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: $   

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Current ratio = Current assets / Current liabilities
2 = 3000000 / Current liabilities
Current liabilities = 3000000/2 1500000
Quick ratio = ( Current assets - Inventories ) / Current liabilities
1.7 = ( 3000000 - Inventories ) / 1500000
1500000 * 1.7 = 3000000 - Inventories
2550000 = 3000000 - Inventories
Inventories = 3000000 - 2550000 450000
If you have any doubt then please ask
Please do rate the answer
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: $
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?
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...
The Nelson Company has $1,260,000 in current assets and $450,000 in current liabilities. Its initial inventory...
The Nelson Company has $1,260,000 in current assets and $450,000 in current liabilities. Its initial inventory level is $285,000, 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 of short-term funds?...
The Nelson Company has $1,485,000 in current assets and $550,000 in current liabilities. Its initial inventory...
The Nelson Company has $1,485,000 in current assets and $550,000 in current liabilities. Its initial inventory level is $425,000, 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 of short-term funds?...
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 $1,312,500 in current assets and $525,000 in current...
Current and Quick Ratios The Nelson Company has $1,312,500 in current assets and $525,000 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 2.2? 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...
The Nelson Company has $1,530,000 in current assets and $510,000 in current liabilities. Its initial inventory...
The Nelson Company has $1,530,000 in current assets and $510,000 in current liabilities. Its initial inventory level is $355,000, 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 amount of short-term funds?...
The Nelson Company has $1,428,000 in current assets and $510,000 in current liabilities. Its initial inventory...
The Nelson Company has $1,428,000 in current assets and $510,000 in current liabilities. Its initial inventory level is $335,000, 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 amount of short-term funds?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT