What is maximum additional short-term funding it can borrow

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Reference no: EM13879389

Hartford 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?

a. $750,000

c. $150,000

b. $350,000

d. $500,000

Reference no: EM13879389

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