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( Liquidity analysis ) The Mitchem Marble Company has a target current ratio of 2 . 1 but has experienced some difficulties financing its expanding
Liquidity analysis The Mitchem Marble Company has a target current ratio of but has
experienced some difficulties financing its expanding sales in the past few months. At present, the
firm has a current ratio of and current assets of $ million. If Mitchem expands its receivables
and inventories using its shortterm line of credit, how much additional shortterm funding can it borrow
before its current ratio standard is reached?
The additional amount of receivables and inventories shortterm debt is $ million. Round to two
decimal places.
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