Blackberry Co. has experienced some difficulties financing its short-term expansion plans for its business. Blackberry Co. financed
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Blackberry Co. has experienced some difficulties financing its short-term expansion plans for its business. Blackberry Co. financed the construction of a new warehouse with a long-term loan from a bank. As a condition to obtain the loan, Blackberry agreed to maintain a current ratio of at least 2.0. At present, it has current assets at the level of $750,000 and a current ratio of 2.5. How much additional short term financing can the company borrow in order to finance its increasing sales before its current ratio target is reached?
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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