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Cullumber Manufacturing Inc. (CMI) has a loan from the Canadian National Bank to help finance its working capital. The terms of the loan are that
Cullumber Manufacturing Inc. (CMI) has a loan from the Canadian National Bank to help finance its working capital. The terms of the loan are that the bank will lend CMI an amount up to 34% of its inventory balance and 50% of its accounts receivable. One of the loan covenants requires that CMI maintain a current ratio greater than 2.0. Information related to CMl's current assets and current liabilities is shown in the following table: Does CMI satisfy the loan covenant in both years? (Round answers to 1 decimal place, e.g. 18.4.) CMI the loan covenant in 2024. CMI the loan covenant in 2023
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