Buffalo Company Has Current Assets, Current Liabilities, and Long-Term Liabilities

question 46

Multiple Choice

Buffalo Company has current assets, current liabilities, and long-term liabilities of $10,500, $3,000, and $4,000, respectively at the end of 2017. How much cash can Buffalo use to acquire equipment and retain a current ratio of at least 2.0?

• A)$1,000
• B)$4,500
• C)$4,000
• D)$6,000

---

Definitions:

Square Feet

A unit of area measurement in the imperial system, representing the area of a square with sides of one foot.

Radical Expression

An expression that includes a radical symbol (√), signifying the square root or other root of the number or expression within it.

Simplify Expression

The process of altering an expression to make it easier to understand or work with, often by combining like terms and applying arithmetic operations.

Fractional Exponent

An exponent in the form of a fraction, where the numerator indicates a power and the denominator indicates a root.