Cheung Keong Ltd. currently has ($2,150,000) in current assets and ($860,000) in current liabilities. The companys managers

Question:

Cheung Keong Ltd. currently has $$2,150,000$ in current assets and $$860,000$ in current liabilities. The company’s managers want to increase the firm’s inventory, which will be financed by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.2?

Fantastic news! We've Found the answer you've been seeking!