(Liquidity analysis) The Crown Carpet Company has $3,000,000 in cash
(Liquidity analysis) The Crown Carpet Company has $3,000,000 in cash
and a total of $12,000,000 in current assets. The firm’s current liabilities equal $6,000,000 such that the firm’s current ratio equals 2. The company’s managers want to reduce the firm’s cash holdings down to $1,000,000 by paying $500,000 in cash to expand the firm’s truck fleet and using $1,500,000 in cash to retire a short-term note. If they carry this plan through, what will happen to the firm’s current ratio?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post (Liquidity analysis) The Crown Carpet Company has $3,000,000 in cash appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.