Hoffman Paper Company, a profitable distributor of stationery and office supplies, has an agreement with its banks that allows Hoffman to borrow money on a short-term basis to finance its inventories and accounts receivable. The agreement states that Hoffman must maintain a current ratio of 1.5 or higher and a debt ratio of 50 percent or lower. Given the following balance sheet, determine how much additional money Hoffman could borrow at this time to invest in inventory and accounts receivable without violating the terms of its borrowingagreement.

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Cash Accounts receivable150,000 Inventory Fixed assets (net 690,000 $200.000 300,000 630.000 $50,000 Current liabilities Long-term debt 250.000 Stockholders equity Total liabilities and Total assets $L130,000 stockholders equity 130,000