The Owners of a Bakery Need to Borrow Money to Purchase

question 59

Short Answer

The owners of a bakery need to borrow money to purchase a new oven.The bakery has current assets of $52,000 and current liabilities of $15,000.How much can they borrow if they want their current ratio of assets to liabilities to be no less than 2.6? (Note: The funds they receive are considered as current assets and the loan as a current liability.)

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Definitions:

Fontanelles

Soft spots on a baby's skull where the bones have not yet fused, allowing for growth of the brain and skull.

Cephalocaudal

denotes a pattern of growth in humans where development proceeds from the head downwards through the body, guiding both physical growth and motor skill development.

Proximodistal

A pattern of development where growth starts at the center of the body and moves towards the extremities.

Proximodistal

Describes the pattern of development that proceeds from the center or core of the body outwards towards the extremities.