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At the end of the last year, a firm had a current ratio of 1.4, net fixed assets of $2,500 and notes payable of $0,
At the end of the last year, a firm had a current ratio of 1.4, net fixed assets of $2,500 and notes payable of $0, and total assets of $5,100. Based on pro forma sales, current liabilities will increase by $500 and current assets will increase by $900. By how much can notes payable increase on the pro forma statement without changing the current ratio?
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