I have been working on this for hours and am totally stuck! Can anyone help with

Question

I have been working on this for hours and am totally stuck! Can anyone help with step by step for this one? The Nelson Company has $1,365,000 in current assets and $525,000 in current liabilities. Its initial inventory level is $315,000, and it will raise funds as additional notes payable and use them to increase inventory.
How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.5? Round your answer to the nearest cent.

Explanation / Answer

Let the increase in notes payable be x Current asset/current liability >= 1.5 ($1,365,000+x)/($525,000+x) >=1.5 $1,365,000+x >=787500+1.5x $577500 >=.5x x

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