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:

HR Triad

A rephrased definition: Represents the essential elements of human resources management including strategy execution, workforce advocacy, and organizational change facilitation.

Open Markets

Economic systems or environments characterized by free trade, with minimal governmental restrictions on business operations and transactions.

Globalization

Refers to the process of deeper integration and interaction among people, companies, and governments worldwide, primarily due to advances in communication and trade.

Domestic Business Markets

Markets within a country's borders where goods and services are bought and sold.