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hi can you please answer this question? Sheridan Manufacturing Inc. (SMI) has a loan from the Canadian National Bank to help finance its working capital.
hi can you please answer this question?
Sheridan Manufacturing Inc. (SMI) 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 SMI an amount up to 34% of its inventory balance and 50% of its accounts receivable. One of the loan covenants requires that SMI maintain a current ratio greater than 2.0. Information related to SMI's current assets and current liabilities is shown in the following table: Does SMI satisfy the loan covenant in both years? (Round answers to 1 decimal place, e.g. 18.4.)Step by Step Solution
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