Credit Limit on a Line of Credit

Company policy at Edson Enterprises is to finance all seasonal increases in net working capital with a line of credit. The companys controller collected the following information:

	Current Assets (CAD)	Current Liabilities (CAD)
2019 (Actual)
Quarter 1	72,120	21,450
Quarter 2	92,950	28,950
Quarter 3	63,500	21,870
Quarter 4	53,400	12,950
2020 (Forecast)
Quarter 1	79,140	24,950
Quarter 2	96,250	30,100
Quarter 3	68,570	24,860
Quarter 4	62,350	18,560

The most appropriate credit limit for Edsons line of credit in 2020 is closest to:

Select one:

a. CAD 24,030.

b. CAD 24,865.

c. CAD 25,700.