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Maslowich
3 years ago
6

Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B

aker wants to purchase additional inventory for its upcoming Christmas​ season, and will pay for the inventory with shortminusterm debt. How much inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million?
Business
1 answer:
Orlov [11]3 years ago
7 0

Answer:

$1.67 Million

Explanation:

Current asset = 15 Million    

Current liabiltiy = 15 Million/3

                          = 5 Million    

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement    

(15 + x)/5+x = 2.5    

       15 + x  = 12.5 + 2.5x    

            2.5 = 1.5x    

               x = $1.67 Million

Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million

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FedEx Corp stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend last year. It ended last year
mr Goodwill [35]

Answer:

$730 and 3.53%

Explanation:

Given that

Initial Price = $103.39

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Dividend Paid = $0.35

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The computation of the dollar return and the percent return is shown below:

Dollar return is

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And, the percentage return is

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Answer:

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