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

question 88

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Buffalo Company has current assets, current liabilities, and long-term liabilities of $9,000, $3,000, and $4,000, respectively at the end of 2010. How much cash can Buffalo use to acquire equipment and retain a current ratio of at least 2.0?
a. $1,000
b. $3,000
c. $4,000
d. $6,000


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