On December 31, 2017, Roper Company Had Current Assets (Cash)

question 71

Essay

On December 31, 2017, Roper Company had current assets (cash) of $15,000 and current liabilities (accounts payable) of $8,000, resulting in a current ratio of 1.88. The company needs to increase its current ratio to 2.75 by December 31, 2018. Calculate the amount of accounts payable that needs to be paid in order to boost the current ratio to 2.75.

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Definitions:

Creativity

The ability to produce original and unusual ideas, or to make something new and imaginative.

Organization

A structured group of people who come together to meet a common goal, such as a business or charity.

Stages of Creativity

A conceptual framework outlining the process of creative thinking, typically including preparation, incubation, illumination, and verification phases.

Lateral Thinking

A problem-solving approach that encourages looking at problems from new and diverse perspectives, rather than following conventional step-by-step logic.