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After consulting with the comptroller, the president of the Ace Sports Equipment Company decides to take out a short-term loan to build up inventory. The
After consulting with the comptroller, the president of the Ace Sports Equipment Company decides to take out a short-term loan to build up inventory. The company has current assets of $350,000 and current liabilities of $80,000. 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.) current assets current ratio current liabilities
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