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?

Understand how validity and reliability contribute to the practical utility of a test.

Learn about the relationship between IQ tests and academic performance as well as other real-life outcomes.

Understand the concept of market breadth and its significance in technical analysis.

Recognize different types of technical indicators and their uses in analyzing market trends and sentiments.

---

Definitions:

Quantity of Money Demanded

The total amount of money that households and businesses in an economy want to hold at a given time, based on interest rates and economic activity.

Money Supply

The bulk sum of assets in monetary form within an economy at a particular moment.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period, used as a measure of economic performance.

Multiplier

The ratio of change in the aggregate output (or income) to the change in an initial injection of spending, demonstrating the ripple effect in the economy.