Question

1-Future Value: Ordinary Annuity versus Annuity Due

A) What is the future value of a 10%, 5-year ordinary annuity that pays $750 each year? Round your answer to the nearest cent. $

B) If this were an annuity due, what would its future value be? Round your answer to the nearest cent. $

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 short-term funds? Round your answer to two decimal places.

Answer 1

1)

A)

B)