the policy of company that the current ratio cannot fall below 1.5 to 1. its current liabilities are 400,000 and the present current ratioos 2 to 1. how much is the maximum level of new short term loans it can secure without violationg the policy?
Added by Moi C.
Step 1
Given that the current ratio is 2 to 1, this means that the company's current assets are twice its current liabilities. So, the current assets are 2 * 400,000 = 800,000. The company's policy is that the current ratio cannot fall below 1.5 to 1. This means that Show more…
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