What is the maximum additional short-term funding, Financial Management

B.J. Industries has a current ratio of 2.5, with $2.5 million in current assets.  Due to sales growth, the company wants to expand accounts receivable and inventories by taking on additional short-term debt.  If B.J. Industries wants to maintain a minimum current ratio of 2.0, what is the maximum additional short-term funding it can borrow? 

 

Posted Date: 3/21/2013 1:57:42 AM | Location : United States







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