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Wagner Inc. has $200 in current assets and $125 in current liabilities. Inventory before any changes is $40. Wagner wants to reduce short-term loans

Wagner Inc. has $200 in current assets and $125 in current liabilities. Inventory before any changes is $40. Wagner wants to reduce short-term loans (a current liability) and hold less inventory. About how much can Wagner's short-term loans decline without pushing its current ratio above 2.0?

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