Looking for trustworthy answers? Westonci.ca is the ultimate Q&A platform where experts share their knowledge on various topics. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
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
Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
