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Ananda's pool Supply Company in Manhattan Beach, California, has been expanding its operations for the past two years. The firm's sale have grown rapidly as

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Ananda's pool Supply Company in Manhattan Beach, California, has been expanding its operations for the past two years. The firm's sale have grown rapidly as a result of the expansion in the economy of the beach community. How- ever, Ananda's is a privately held company and its source of funds is the firm's bank. The company needs to expand its inventory to meet the needs of its growing customer base but also wishes to maintain a current ratio of at least 3. If Ananda's current assets are $6 million and its current liabilities are $1.5 million, such that its current ratio now 4, how much can it expand its inventories before its target current ratio is violated

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