(Learning Objective 1, 5: Reporting current liabilities) Assume the top management of Best Buy Co., Inc., examines company accounting records at February 7, three weeks before the end of the fiscal year (amounts in billions):
|
Total current assets |
$ 8.0 |
|
Noncurrent asset |
3.9 |
|
$11.9 |
|
|
Total current liabilities |
6.0 |
|
Noncurrent liabilities |
0.6 |
|
Owners’ equity |
5.3 |
|
$11.9 |
Suppose Best Buy’s top management wants to achieve a current ratio of 1.4. How much in current liabilities should Best Buy pay off within the next 3 weeks to achieve its goal? (Challenge)