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

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Definitions:

Government Policy

The deliberate action or inaction by a government or public authority to address public issues and promote welfare.

Aggregate Demand

The aggregate need for products and services in an economy at a specific price level during a certain time frame.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, during a specific time period.

AD1 to AD2

Represents a shift from one aggregate demand curve to another in macroeconomic models, indicating changes in the total demand for goods and services in an economy.