Redfearn Company Has Current Assets of $150,000 and Current Liabilities

question 152

Multiple Choice

Redfearn Company has current assets of $150,000 and current liabilities of $60,000. How much inventory could it purchase on account and achieve its minimum desired current ratio of 2 to 1?

• A) $30,000
• B) $40,000
• C) $10,000
• D) $20,000

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