The Nelson company has$1,212,500 in current assets and 485,000 in current liabilities. Its initial inventory level is $340,000 and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelsons short term debt increase without pushing its current ratio below 2.0? do not around intermediate calculations. Round your answer to the nearest dollar.

Answers

Answer 1

The current ratio is the ratio of a company's current assets to its current liabilities. It is a liquidity ratio that determines whether a company has sufficient resources to pay its debts in the short term. A current ratio of 2.0 or more is considered good. It indicates that a company has enough current assets to cover its current liabilities twice.

We can use the current ratio formula to calculate how much Nelson's short-term debt can increase without pushing its current ratio below 2.0.

Current ratio = Current assets / Current liabilities

We have, Current assets = $1,212,500

Current liabilities = $485,000

Current ratio = 2.0

We can rearrange this formula to find the maximum amount of short-term debt that Nelson can take without decreasing its current ratio below 2.0.

Let us assume that the total increase required in current liabilities to keep the current ratio of 2.0 be x.

Current Ratio = Current assets / (Current liabilities + x)

2.0 = 1212500 / (485000 + x)

By cross-multiplying,

2(485000 + x) = 1212500

970000 + 2x = 1212500

2x = 1212500 - 970000

2x = 242,500

x= 242,500 / 2

x = $121,250

Therefore, the short-term debt increase without pushing its current ratio below 2.0 required by Nelson's is $121250.

To learn more about Current ratio, visit:

https://brainly.com/question/32671358

#SPJ11


Related Questions

Which of the following is a fixed cost for a company that sells greeting cards online and mails the printed cards to customers?

Answers

Answer:

D

Explanation:

A. The paper and glue to make the cards B. Hourly workers who assemble and ship the cards C. Packaging and shipping costs D. A paper cutting machine

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

explain how the looting of shops will affect business in term of the relationship between social responsibility and triple bottom line​

Answers

Social responsibility means an acceptable theory which is applies to everyone, expecting that the act of individual must benefit the whole of society.

Corporate Social Responsibility refers to practices and policies undertaken by  firms and other business, who are intending to have a positive influence on the environment and world at large.

Triple bottom line​ is also a concept that state that in addition to the major objectives of firms which is to make profit, they should ensure they impact the society and environment as well.

The looting of shops and mall will take a toll on the moral effort of firms and businesses adhering to the  triple bottom line​ concept as well as the corporate social responsibility as they have to count on the loss incurred, caused by the masses.

Despite that insurance provision and government can provide compensation for the looted goods, still, the morale of the firms authorities and business owners towards the social responsibility concept and triple bottom line​ concept will be negative

Learn more about this here https://brainly.com/question/1341005

The shops and malls are considered as safe place for citizens. Whenever there are any crisis in the state, these business activities are stopped for some time and these elective shopping activities are freeze to deal with crisis or natural disaster situation.

In such a situation few people who are robber by nature take advantage of such situation and then exploit the natural disaster. They get their own benefit from the disaster situation.

They know how to deal with crisis and they get benefit from their robbery and looting shops and malls. In this way businessmen looses great money and valuable things from their shops.

Learn more at https://brainly.com/question/24383317

"Development has a negative impact on our environment" Motivate why you agree with the
statement
[8​]

Answers

industrial lead to water pollution

an employee can be dismissed if their job surplus to requirements' outline why this state ment is false

Answers

Hiring labour is different from buying other goods and services, and the contract between the employer and the employee is incomplete. It does not cover what the employer really cares about, which is how hard and well the employee works.

What are the two bet reource for quetion or upport regarding buine continuity from cutomer

Answers

Regarding a business continuity from a customer, there are two major aspect, such as team work and communication. In here, communication can be defined as a communication between each person and team and also between customer and organization.

In economic and business, Business continuity generally can be defined as a condition after an emergency or disruption where a business's level of readiness to maintain critical functions. Business continuity including several aspects, such as  Security breaches. Natural disasters. Power outages. In business continuity, there are 3 major elements, such as Resilience, recovery and contingency.

Here you can learn more about business continuity https://brainly.com/question/3548981

#SPJ4

on jan. 1, 2020, hufflepuff industries, inc. issues stock options for 100,000 shares to a regional manager. the options have an estimated fair value of $6 each. the provide additional incentive for the manager's achievement, the options are not exercisable unless the region revenue increase by 8% in three years. because the manager when to ravenclaw college, hufflepuff initially estimates that the incompetent manager will not achieve the goal. how much compensation will be recorded each year in 2020, 2021, and 2022, the vesting period?

Answers

The compensation that will be recorded each year from 2020 to 2022, in their respected vesting periods, given the options awarded by Hufflepuff Industries, is $200, 000.

How to find the amount recorded?

Even though Hufflepuff Industries don't believe that the manager will be able to achieve the goal, on account of them going to Ravenclaw College, they still need to record the compensation that they might have to award the manager, should the manager achieve the goal.

To find the amount to be recorded based on the options when exercised, the formula is:

= Number of vested stock options issued x Estimated Option fair value

= 100, 000 x 6

= $ 600, 000

They will have to pay the manager this amount of 3 years in 2020, 2021, and 2022, if they meet the target. The amount to be recorded in the vesting period of each year is:

= Total option value / Number of years

= 600, 000 / 3

= $200, 000

Find out more on vested options at https://brainly.com/question/25693765

#SPJ1

problem 3: the branch manager at a local bank is interested in understanding which types of accounts a customer tends to have simultaneously so that he can offer additional financial services to his clients. he has compiled a list of customers and the accounts they have (bank accounts.xlsx). a. find the association rules for this study, using 50% as the minimum confidence value. b. what would you recommend to the branch manager as a result of this analysis?

Answers

By analyzing the association rules between different types of accounts, the branch manager can offer targeted financial services to customers based on their account ownership patterns, enhancing customer satisfaction and driving revenue growth.

a. To find the association rules, we can use the Apriori algorithm. First, we calculate the support and confidence values for each itemset and rule. The support indicates the frequency of occurrence, while the confidence measures the reliability of a rule. Using a minimum confidence value of 50%, we can identify the association rules that meet this criterion.

b. Based on the analysis, the branch manager can uncover patterns of simultaneous account ownership by customers. For example, if customers tend to have a savings account and a retirement account together, the manager can offer retirement planning services to those customers. Similarly, if customers frequently have a checking account and a credit card, the manager can provide credit card rewards programs or overdraft protection services. By understanding the associations between different account types, the manager can tailor their financial service offerings to meet customers' specific needs and preferences, potentially increasing customer satisfaction and loyalty while driving revenue growth for the bank.



Therefore, By analyzing the association rules between different types of accounts, the branch manager can offer targeted financial services to customers based on their account ownership patterns, enhancing customer satisfaction and driving revenue growth.

To learn more about association click here

brainly.com/question/12782981

#SPJ11

True/False? production converts inputs into outputs by changing the inputs in some way.

Answers

True. Production converts inputs into outputs by changing the inputs in some way. Production includes the transformation of data sources (regular assets, unrefined components, HR, capital) into yields (items or administrations).

Production is the process of converting inputs into outputs by transforming and adding value to the inputs through various processes such as manufacturing, assembling, or processing. During the production process, the inputs are transformed or modified in some way to create the final output. This is why production is often described as the conversion of inputs into outputs. The creation cycle and result straightforwardly result from gainfully using the first information sources (or factors of creation). Known as primary producer labour and products, land, work, and capital are considered the three central creation factors. These essential data sources are not fundamentally modified in the resulting cycle, nor do they become an entire part of the item. Under traditional financial matters, materials and energy are ordered as optional elements as they are side-effects of land, work and capital.

Know more about Production - https://brainly.com/question/30754984

#SPJ4

What are other ways that a company can utilize a multigenerational team to their advantage

Answers

A multigenerational team can be used in the following ways by a company in multiple ways. Such teams provides an organisation with more tech savy workforce that has multiple perspectives and eager to learn.

Multiple perspectives - Different generations may have different perspectives on job responsibilities. Sharing perspectives within and across teams brings a diverse set of knowledge and skills to bear on innovation.Problem-solving abilities - Problems are solved creatively by combining multiple perspectives and diverse skills. Life experience shapes how we relate to and interact with others in the face of adversity and conflict. As a result, age-diverse teams can offer a variety of solutions to problems.Learning/mentoring opportunities - The more diverse a team, the more opportunities for people to interact and learn from each other's perspectives. This includes opportunities for mutually beneficial mentoring. Those with more experience can counsel younger employees on career advancement. Furthermore, the recent trend of reverse/cross-generational mentoring allows more junior employees to educate more senior employees on current trends and technology.Knowledge transfer and retention - Each generation's awareness and strengths better prepare the business to meet its future leadership needs. Tacit knowledge is retained within the organisation through a strong internal talent pipeline. Focus is more on in-house promotion and less on recruiting from the outside.Relationships that are one-of-a-kind - Meaningful relationships with coworkers can help employees meet their emotional needs and increase job satisfaction. The organisation's age groups mirror a family structure, providing opportunities for personal connections with those outside of one's own generation.

To know more about multigenerational here-

brainly.com/question/13457717

#SPJ4

Utility is an important aspect of market research because it can save a company lots of time and money.

true or false

Answers

false , it is important to the market but it does not help its like bills so you don’t really save money

The given statement that Utility is an important aspect of market research because it can save a company lots of time and money is false.

What is market research?

Market research is defined as the process of actively questioning latent customers to find out the viability of a brand-new service or product.

Market research modifies a business to determine its target market and find comments and another input from customers about their involvement in a product or service.

Utility is critical to the market, but it does not support to save money because it is similar to bills.

Therefore, the given statement is false.

Learn more about the market research, refer to:

https://brainly.com/question/3697439

#SPJ2

why do most people invest in the stock market?

Answers

Because many people invest in stocks simply because the odds are in their favor that over time, the market will go up and earn them money.

Answer:

To make profit

Which of the following is not an example of a liability?

A. A home you own

B. An apartment you rent

C. Student Loans

D. Your phone bill

Answers

Answer:

B

Explanation:

You are renting so you are temporarily living there, unlike a home owner. They own the home meaning they are responsible for the upkeep. Renters that responsability falls upon the land lord.

The option that is not an example of a liability is an apartment that you rent.

What is a liability?

A liability can be described as something that one is responsible for.

The reason why the rented apartment is not a liability is the fact that it is rented. That is you are not in charge of the place.

The maintenance and others lies in the hands of the owner and not in your hands because you do not own the place.

The student loan and phone bill are all expenses that you are responsible for. They are liabilities.

Read more on https://brainly.com/question/15006644?referrer=searchResults

How does the Better Business Bureau effect the economy?

Answers

Answer:

Varies

Explanation:

It helps people find businesses that are trustworthy.

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this

Answers

An option-fee based contract is the contract attached to his lease as its has an option to purchase that can be exercised within the next two years.

What is an option-fee based contract?

An type of contract is that allows a money to be paid by a buyer to a seller for the option to terminate a real estate contract.

In conclusion, an option-fee based contract is the contract attached to his lease as its has an option to purchase that can be exercised within the next two years.

Read more about option fee

brainly.com/question/984979

As an entrepreneur, jill spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative
duties.
OA.
True
OB.
False

Answers

It is false that an enterprenuer, jill will spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative duties.

Who is an enterprenuer?

An entrepreneur is an individual who Identifies a gap or problem and creates a new business around it.

The persons bears most of the risks attached to the business and is more dedicated to the activities, planning and administrative work of the business.

Therefore, It is false that an enterprenuer, jill will spends the majority of her time on the more 'glamorous' activities of running a business rather than the administrative duties.

For more information on entrepreneur kindly check https://brainly.com/question/1394707

The term for distributing merchandise from the manufacturer to retail locations is called:
A. Receiving
B. Updating
C. Refreshing
D. Allocation

Answers

Answer:

Receiving??

Explanation:

(I don't really know, I'm just trying to get points for answering questions so I can ask my own questions lol)

Which of the following is an example of a worker who has work/life balance
conflicts?
O A. A woman refuses to answer emails from the office when she is
not working
B. A man has missed all his daughter's ball games because he works
too much.
C. A woman has her office emails forwarded to a coworker while on
vacation.
D. A man receives notifications when he gets a new email at the
office,

Answers

Answer:

A man has missed all his daughter's ball games because he works

too much.

Explanation:

seems like it

Answer:

A man has missed all his daughter’s ball games because he works too much

Explanation:

A p e x

immediately after the fed changes the money supply from its initial equilibrium level, the quantity of money supplied

Answers

The amount of money given exceeds the amount of money required at the first equilibrium as soon as the Fed alters the supply of money from its original equilibrium level.

Why is it called money?

Money is derived from the Latin moneta, which means "coin," through the French term monnaie. It is thought that the Latin phrase came from a temple dedicated to Juno upon Capitoline, was one Rome's seven hills.

What is money in simple words?

An good that is generally held as a medium of economic exchange is money. This serves as a means for communicating values or pricing. Since it goes form person to person as well as from to country, facilitating trade, it is the main indication of wealth.

To know more about money visit:

brainly.com/question/14276558

#SPJ4

what subjects in secondary school should i do in order to become a real estate agent?
Subjects ex: Maths, English, science, bio, etc,

Answers

Subjects to be done in secondary school to become a real estate agent include:

Business and economics Math Social studies Technology and computer skills

Which subjects can help in real estate ?

Classes in business and economics can provide a foundation in financial and economic principles, which can be useful for understanding real estate market trends and analyzing property values.

Courses in mathematics, such as algebra and geometry, can be helpful for understanding and analyzing property measurements, statistics and data.

Understanding history, geography, and culture of a location can be helpful in understanding the market and giving clients the best advice and can be learnt from secondary school.

Find out more on real estate at https://brainly.com/question/1155381

#SPJ1

ian gonna need these so here

Answers

Answer:

hi

Explanation:

10.Carrying insufficient quantities of inventory on A) would not affect the company's profitability B) may result in lost sales. C) has little effect on customer satisfaction. D) will increase the costs of carrying inventory. 11 Inventory shipped FOB shipping point and in transit on the last day of the year should be included in: A) the inventory balance of the seller. B) the inventory balance of the buyer. C) neither the inventory balance of the buyer or the seller. D) both the inventory balance of the buyer and the seller. 12 Acme Company's balance sheet shows three inventory accounts-raw materials, work in 13 process, and finished goods. Acme Company must be a: A) manufacturer. B) merchandiser. C) service business. D) wholesale distributor. Goods placed in inventory are initially recorded at: 14 A) market value. B) the amount paid to acquire the asset. C) the amount paid to prepare the asset for sale to customers. D) the amount paid to acquire the asset and prepare it for sale. 15.When a company sells goods, it removes their cost from the balance sheet and reports the cost on the income statement as A) Selling Expenses. B) Cost of Goods Sold C) Finished Goods Inventory. D) Inventory

Answers

Option B is correct. Carrying insufficient quantities of inventory on may result in lost sales.

Inventory or stock alludes to the items and substances that a business holds for the excess motivation behind resale, fabricating, or utilization. Inventory the board is a region generally roughly indicating the structure and site of supplied merchandise. It is required at restrictive spots inside an office or inside many spots of a conveyance local area to go before the normal and conscious bearing of assembling and stock of substances.

Stock, stock or canvases in framework (or works of art underway) has been drawn out from creation designs to supplier organizations and activities, through summing up the definition to be "all compositions inside the means of assembling - all canvases this is or has occurred past to the last bit of assembling". With regards to an item fabricating framework, stock alludes to all compositions that has occurred - uncooked substances, part of the way finished stock, finished stock past to deal, and takeoff from the delivering framework. With regards to administrations, stock alludes to all artworks completed past to deal, for example, incompletely framework data

Know more about Inventory - https://brainly.com/question/29417651

#SPJ4

Is the accounting profession responded in a timely, comprehensive, and effective manner to stakeholders and business current challenges? Explain

Answers

Yes the accounting profession is responded in the way that it wwould take care of current business challenges.

What is the accounting profession?

This is the profession where financial analysis and other functions such as auditing are carried out.

The institution today is being structured in a way that it would still be able to meet the goals of the times that we are in.

Read more on accounting here: https://brainly.com/question/1033546

Dnstrstdhfgjfuufuufdydydyufcjcjigjvcjfrdgddfhh

Answers

Answer:

akvsgsssgsuajawgwgwjwiwbwiqk

a plan pays 75 percent of the provider's usual charge and requires the copayment of $15 to be applied toward the provider's payment. calculate what the plan pays the provider when the usual charge is $380?

Answers

The provider's payment. calculate what the plan pays the provider when the usual charge is $270

What is provider's payment?
Provider Payment
is any amount of money that our third-party service provider transports on your behalf to an before debiting your Payment Account to reimburse itself. Our third-party service provider makes each Provider Payment, not us (your bank), and your responsibility to reimburse only those Provider Payments is incurred and owed straight to the third-party provider (not to us). "Provider Payment" also includes any reimbursing checking account by the provider that could be reversed later. means paying providers inside a way that creates incentive schemes for efficiency in the delivery of high-quality, easily accessible health-care services through a standardised reimbursement strategy;

--The provider is paid $270 (380 x .75) - 15 = $270) by the plan

To learn more provider's payment
https://brainly.com/question/15136793
#SPJ4

.Attestation services are performed by
A. external auditors
B. internal accountants
C. internal auditors
D. third-party accountants

Answers

Attestation services are performed by external auditors. Thus, option 'A' is the correct option.

What is an attestation service?

A certified public accountant will independently analyze a company's financial statements as part of an attest service (CPA). The CPA provides an attestation report with findings on the accuracy of the data. The American Institute of Certified Public Accountants, a professional services organization, creates and disseminates the standards for attestation services (AICPA).

The standards have been modified in recent years to take into account a larger variety of attest services unrelated to financial reporting. An organization could, for instance, ask for an attest service for its consumer privacy statement.

Learn more about the attestation service, here:

https://brainly.com/question/17355461

#SPJ1

You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride in your "No Haggle" sales policy. Last year, your dealership earned record profits of $1.9 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for midsized Honda automobiles is -1.2. In each of the last five years, your dealership has sold more midsized automobiles than any other Honda dealership in the nation. This entitled your dealership to an additional 40 percent off the manufacturer’s suggested retail price (MSRP) in each year. Taking this into account, your marginal cost of a midsized automobile is $11,000.


What price should you charge for a midsized automobile if you expect to maintain your record sales?

Answers

The price that should be charge for a midsized automobile if you expect to maintain your record sales is $15,230.77.

Using this formula

Midsized automobile price = Marginal Cost (3×Elasticity) / 1 + (3 × Elasticity)

Let plug in the formula

Midsized automobile price  = $11,000 (3× -1.2) / 1 + (3× -1.2)

Midsized automobile price  = $14,000 × -4.8/ -3.8

Midsized automobile price = $14,000 × 1.384615

Midsized automobile price  = $15,230.765

Midsized automobile price =$15,230.77 (Approximately)

Inconclusion the price that should be charge for a midsized automobile if you expect to maintain your record sales is $15,230.77.

Learn more here:https://brainly.com/question/16991499

Which of the 4 P's focuses on communicating the value proposition?

Answers

Answer: The marketing mix is most commonly executed through the 4 P's of marketing: Price, Product, Promotion, and Place.

Explanation:

11. What are assets?

11. What are assets?

Answers

financial accounting, an asset is any resource owned by a business or an economic entity. It is anything that can be owned or controlled to produce value and that is held by an economic entity and that could produce positive economic value.
I hope this helps

Answer:

I believe it's the last option.

Explanation:

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations.

how does marmite use product differentiation

Answers

Marmite use product differentiation as viewed as having unique features, such as Marmite or the iPhone. It frequently referred to as a differentiator.

What do you mean by the product differentiation?

The feature or features that set your product or service apart from the competition for your target market are known as product differentiation.

It improves brand loyalty, sales, and growth by highlighting the differences between what you sell and what your rivals provide. These comprise vertical differentiation, mixed differentiation, and horizontal differentiation.

In the financial situation of today, product differentiation is crucial. It enables the seller to highlight the distinctive qualities that make their product outstanding by drawing comparisons between their own product and those of the market's rival products.

Therefore, Marmite use product differentiation as viewed as having unique features, such as Marmite or the iPhone. It frequently referred to as a differentiator.

To know more about the product differentiation, visit:

https://brainly.com/question/13077606

#SPJ1

Does anyone have a perfect competition business example?

Answers

Answer:

Perfect competition is a type of market structure where products are homogenous and there are many buyers and sellers. ... Whilst perfect competition does not precisely exist, examples include the likes of agriculture, foreign exchange, and online shopping.

Explanation:

Other Questions
A person may carry forward unused RRSP contribution roomfor:a) three (3) years.b)seven (7) years.c) ten (10) years.d) Indefinitely Veinte mil lenguas de viaje submarino capitulo 8 resumen What is the radius of the circle if the given equation is x y 9? How does fear affect people. Explain. soon after birth, identical twins jay and jo were adopted by two different sets of parents, one from boston and one from los angeles. when jay and jo grow up, they will be good candidates to PLS HELP ME... i will 15 points AND DON'T ANSWER IF YOU DON'T KNOW THE ANSWER... THANK YOU -8x+6y=12 8x+10y=20 elimination can someone help pls You have 30 associates , 2 are not on the production floor. Each can process 150 UPH; Each works 8 hr days, 5 days week; each day each worker is given 2 15 min breaks. How many units can they output per If PQRS is a parallelogram, what is the value of y?O A. 44B. 60C. 52O D. 26O E. 48O F. Cannot be determined What is the standard deviation of 10,18,21,22,24,25,26,28,29,30 Undesirable side effects of incorporating sympathomimetic agents such as epinephrine into local anesthetic solutions include:a. Increased force of air exchangeb. Increased bronchi dilationc. Increased rate and force of heart contractionsd. All options listed The sum of the square of a positive number and the square of 5 more than the number is 125. What is the number? ****Please Read The Description and The questionBefore You answer********Write in C programing Language Not AnyDescriptions Only The Code in C Language********Also Post the Screenshots of the outp SOLVE THE SYSTEM USING SUBSTITUTION HURRY ILL GIVE BRAINLIEST!!!! PLs help pls helpwill mark u brainlist Which of the following affects the rate of diffusion through a selectively permeable membrane?I. concentration gradientII. temperatureIII. molecular size Helppppp please!!! D:Find the perimeter of the trapezoid below:Please no cap!! List five functions of the skeleton. TRUE / FALSE. jane is a loner and often goes to the park wearing camouflage and hides behind trees.