Apex CorpHas Current Liabilities of $2 Million,a Current Ratio of 3

question 22

Essay

Apex Corp.has current liabilities of $2 million,a current ratio of 3.0,a quick ratio of 2.0,and a cash ratio of .75.Given this information,answer the following about the firm's liquidity:
a.What is the value of inventory?
b.What is the value of receivables?
c.What will happen to each of the three ratios if $1 million in current liabilities is refunded with long-term debt?

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