Discover answers to your questions with Westonci.ca, the leading Q&A platform that connects you with knowledgeable experts. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
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
We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.
