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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