A Company Has Current Assets of $100,000,total Assets of $250,000,current

question 156

Multiple Choice

A company has current assets of $100,000,total assets of $250,000,current liabilities of $20,000,and long-term liabilities of $50,000.How much of its existing cash can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?

• A) $40,000
• B) $60,000
• C) $150,000
• D) $180,000

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