Question: ABC Inc. has $2 million in current assets, its current ratio is 1.6, and its quick ratio is 1.2. The company plans to raise funds

ABC Inc. has $2 million in current assets, its current ratio

ABC Inc. has $2 million in current assets, its current ratio is 1.6, and its quick ratio is 1.2. The company plans to raise funds as additional notes payable and to use these funds to increase inventory. By how much can ABC's short-term debt (notes payable) increase without pushing its quick ratio below 0.8

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