Cheriot Corporation has current assets of $2,500,000. Inventory level is $1,000,000 and current liabilities are $1,500,000. The firm decides to fund an increase in inventory by adding to notes payable. A13. By how much can the firm's notes payable increase without violating a current ratio limit of 1.2? (a) $3.5 million (b) $2.5 million (c) $2.7 million (d) $2.3 million (e) $1.8 million