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Firm XXX has $4.5 million in current assets and 3.7 million incurrent liabilities. The firm wants to increase its inventory,which will be financed by a short term note with the bank. Whatlevel of inventories can the firm carry without its current ratiofalling below 1.1?

Firm XXX has $4.5 million in current assets and 3.7 million incurrent liabilities. The firm wants to increase its inventory,which will be financed by issuing a 3-year bond. What level ofinventories can the firm carry without its current ratio fallingbelow 1.5?

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Nelly StrackeLv2
28 Sep 2019
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