Ace Industries has $1.8 million in current assets and $0.75 million in current liabilities. Ace decides to raise funds as additional notes payable and use them to increase inventory. How much can Aces note payable increase without pushing its current ratio below 2?

Select one:

a.$1.4375 million.

b.$0.3000 million.

c.$0.1875 million

d.$0.8125 million.

e.$0.2578 million