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A company has total current assets of $250,000 and accounts payable of $100,000. If their bank has imposed a covenant requiring a current ratio of
A company has total current assets of $250,000 and accounts payable of $100,000. If their bank has imposed a covenant requiring a current ratio of 1.25 or better, what is the maximum level of notes payable allowable? (Assume current liabilities consist of only A/P and N/P) $75,000 $50,000 $100,000 $125,000
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