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:

Binomial Effect Size Display

A method for displaying and understanding more clearly the magnitude of an effect reported as a correlation, by translating the value of r into a 2 × 2 table comparing predicted with obtained results.

Correlation Coefficients

Statistical measures that indicate the strength and direction of a relationship between two variables.

Reliability Coefficients

Statistical measures that indicate the consistency or stability of a test's scores across different administrations or parts of the test.

Integrity Tests

Psychological assessments used by employers to evaluate an applicant's honesty, reliability, and moral character.