At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
Here the maximum level of notes payable allowable will be $100000.
Long-term obligations known as notes payable represent the sums that a firm owes its financiers, including banks and other financial institutions as well as alternative funding sources like friends and family. They are considered long-term since they are due after a year, albeit often within five years.
Calculation of Notes payable is done as follows:
Current Ratio=[tex]\frac{Current Asset}{Current liabilities}[/tex]
Now let current liabilities be 'z'
Therefore:
1.25=250000/z
Thus z=200000
Current liabilities=$200000
Here Current liabilities=Account Payable + Notes payable +
200000=100000+Notes Payable
Notes Payable=200000-100000
=$100000
Therefore the maximum level of notes payable allowable is $100000.
To know more about Notes payable click here:
https://brainly.com/question/25148915
#SPJ4
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.
