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Multi-Tools has been expanding its operation for the past two years. The firms sales have grown rapidly as a result of the expansion. However, this

Multi-Tools has been expanding its operation for the past two years. The firms sales have grown rapidly as a result of the expansion. However, this is a privately listed company, their available source of financing is a line of credit provided by KF Commercial. The company needs to expand its inventory wishes to maintain its current ratio at 3X. If the current assets are at RM6million and the current ratio is at 4X. How much must they invest in inventories and maintain their targeted current ratio?

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