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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Definitions:

Executive Summary

A concise document or section of a document that summarizes the main points of a larger report or proposal.

Timeline

A chronological representation of events, tasks, or milestones, often used in planning and project management to visualize sequences and duration.

Marketing Research

The process of gathering, analyzing, and interpreting information about a market, including about potential and existing customers.

Sales Forecasts

Predictions about the future sales performance of a product or service, based on historical data, market trends, and other factors.