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The Mitchem Marble Company has a target current ratio of 2 . 1 but has experienced some difficulties financing its growth in sales over the
The Mitchem Marble Company has a target current ratio of but has experienced some difficulties financing its growth in sales over the past 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?
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