Problem 3-9 Current and Quick Ratios The Nelson Company has$1,200,000 in current assets and $500,000 in current liabilities.Its initial inventory level is $350,000, and it will raise funds asadditional notes payable and use them to increase inventory. Howmuch can Nelson's short-term debt (notes payable) increase withoutpushing its current ratio below 2.0? Round your answer to thenearest cent. $ What will be the firm's quick ratio after Nelsonhas raised the maximum amount of short-term funds? Round youranswer to two decimal places.
