The RRR Company has a target current ratio of 3.2. Presently, the current ratio is 4.1 based on current assets of $12,956,000. If RRR expands its fixed assets using short-term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached

Question

06-07-2021
Business

Answered

Discover a wealth of knowledge and get your questions answered on IDNLearn.com. Our experts provide timely and precise responses to help you understand and solve any issue you face.

The RRR Company has a target current ratio of 3.2. Presently, the current ratio is 4.1 based on current assets of $12,956,000. If RRR expands its fixed assets using short-term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached

Sagot :

We appreciate your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.

In The Step By Step Simplification Of Expression Below Which Property Is Not Used? 3(1+x)3(x+1)3(x)+3(1)3x +3 A) Associative B) Commutative C) Distributive D)

You Have A Piece Of Wood That Is 7 3/4 Feet Long. You Want To Cut One Piece That Is 3 7/12 Feet Long And One Piece That Is 4 1/12 Feet Long. Do You Have Enou

Proof: Given: Isosceles Trapezoid TRAP With TR=PA Prove: Angle RTA = Angle APR

You Have A Piece Of Wood That Is 7 3/4 Feet Long. You Want To Cut One Piece That Is 3 7/12 Feet Long And One Piece That Is 4 1/12 Feet Long. Do You Have Enou

I Need With Math It Say The Ride-it Store Rents Bicycles. The Cost Is $8.50 For 1 Hour, $13.64 For 2 Hours, $18.80 For 3 Hours, And 23.95 For 4 Hours. If The Pa

In The Step By Step Simplification Of Expression Below Which Property Is Not Used? 3(1+x)3(x+1)3(x)+3(1)3x +3 A) Associative B) Commutative C) Distributive D)

You Have A Piece Of Wood That Is 7 3/4 Feet Long. You Want To Cut One Piece That Is 3 7/12 Feet Long And One Piece That Is 4 1/12 Feet Long. Do You Have Enou

In The Step By Step Simplification Of Expression Below Which Property Is Not Used? 3(1+x)3(x+1)3(x)+3(1)3x +3 A) Associative B) Commutative C) Distributive D)

Proof: Given: Isosceles Trapezoid TRAP With TR=PA Prove: Angle RTA = Angle APR

I Need With Math It Say The Ride-it Store Rents Bicycles. The Cost Is $8.50 For 1 Hour, $13.64 For 2 Hours, $18.80 For 3 Hours, And 23.95 For 4 Hours. If The Pa

Abdulmajeedabiodunacidn Abdulmajeedabiodunacidn · Answer 1 · 2021-07-07T20:46:01-04:00

Answer:

$888,750

Explanation:

The amount of additional funding required is the excess of revised current liabilities based on the current ratio is 3.2 compared with the current liabilities based on the current ratio of 4.1(the one we have currently).

Current ratio=current assets/current liabilities

Current situation:

current ratio=4.1

current assets=$12,956,000

current liabilities=unknown(let us assume it is X)

4.1=$12,956,000/X

4.1*X=$12,956,000

X=$12,956,000/4.1

X=$3,160,000

Revised situation:

target current ratio=3.2

current assets=$12,956,000

current liabilities=unknown(let us assume it is Y)

3.2=$12,956,000/Y

3.2*Y=$12,956,000

Y=$12,956,000/3.2

Y=$4,048,750

additional funding=$4,048,750-$3,160,000

additional funding increase=$888,750

Sagot :

Other Questions