Ronaldinho Trading Co

question 38

Multiple Choice

Ronaldinho Trading Co. is required by its bank to maintain a current ratio of at least 1.75, and its current ratio now is 2.1. The firm plans to acquire additional inventory to meet an unexpected surge in the demand for its products and will pay for the inventory with short-term debt. How much inventory can the firm purchase without violating its debt agreement, if their total current assets equal $3.5 million? Round your final answer to the nearest dollar.

• A) $0
• B) $777,777
• C) $1 million
• D) None of the above

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Definitions:

Avoidant Attachment Style

Avoidant attachment style is a pattern of attachment in which an individual maintains emotional distance in relationships and often appears independent and self-sufficient.

Strange Situation

A procedure devised by Mary Ainsworth in the 1970s to observe attachment relationships between a caregiver and child.

Citizenship Performance

Behaviors exhibited by employees that go beyond their job requirements, contributing positively to organizational culture and performance.

Self-Fulfilling Tendency

A prediction or expectation that causes itself to become true, simply because the prediction was made.