The Mitchem Marble Company has a target current ratio of 2.0 but has experienced some difficulties financing

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The Mitchem Marble Company has a target current ratio of 2.0 but has experienced some difficulties financing its expanding sales in the past few months. At present, the firm has current assets of $ 2.5 million and a current ratio of 2.5. If Mitchem expands its receivables and inventories using its short- term line of credit, how much additional short- term funding can it borrow before its current ratio standard is reached?
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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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