The CEO of an office equipment company decides to borrow money to expand their manufacturing facility. The company has current assets of $4000,000 and current liabilities of $640,000. How much can they borrow if they want their current ratio of assets to liabilities to be no less than 3? 

(Note (1) The current ratio is the ratio of a business' current assets to its current liabilities; (2) The funds they receive are considered as current assets and the loan as a current liability)

Answer rating: 100% (QA)

Ok lets step through this question slowly The current ratio is defined as the companys current asset... View the full answer