Good buys has current assets of $2,500,000 and current liabilities of $1,000,000. if they issue $50,000 of new stock, what will their new current ratio be?

Current ratio is equal to current assets divided by current liabilities. When Good Buys issues $50,000 of new stock, its cash increases by 50,000 and its Equity increases by the same amount. Liabilities, long term or current, are unaffected. Its new current ratio is 2,550,000 / 1,000,000 = 2.55

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a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.