The President of a Computer Company Decides to Borrow Money

question 179

Short Answer

The president of a computer company decides to borrow money to expand their research facility.The company has current assets of $24,920,000 and current liabilities of $6,000,000.How much can they borrow if they want their current ratio of assets to liabilities to be no less than 3.2? (Note: The funds they receive are considered as current assets and the loan as a current liability).

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Definitions:

Heavy Drinking

The consumption of alcohol in large quantities, often exceeding recommended limits, potentially leading to health and social issues.

First Three Months

Typically refers to the initial trimester in pregnancy or the early stages of a given process or period.

Environmental Factors

External elements that can influence development, health, and behavior, including climate, pollution, and social conditions.

Motor Skills

The abilities required to coordinate and execute physical actions and movements, such as walking, running, and writing.