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After consulting the comptroller, the president of Zimmerman Cloud decides to take out a short term loan to build up inventory. The company has current
After consulting the comptroller, the president of Zimmerman Cloud decides to take out a short term loan to build up inventory. The company has current assets of $500,000 and current liabilities of $100,000. How much can the company borrow if the current ratio is to be no less than 2.5? (Note: the funds received are considered as current assets and the loan as a current liability.)
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