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ABC Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000 and it will use supplier credit (accounts

ABC Company has $1,312,500 in current assets and $525,000 in current liabilities. Its initial inventory level is $375,000 and it will use supplier credit (accounts payable) to increase inventory. How much can ABC increase accounts payable without pushing its current ratio below 2.0? What will be the firms quick ratio after ABC has used the maximum amount of suppliers credit? Identify all numbers and show all work.

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