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Airspot Motors, Inc. has $2,241,200 in current assets and $862,000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.1% (assuming all other current assets and current liabilities remain constant)?
Answers: 3
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Airspot Motors, Inc. has $2,241,200 in current assets and $862,000 in current liabilities. The com...
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