Question: Wagner Inc. has $ 2 0 0 in current assets and $ 1 2 5 in current liabilities. Inventory before any changes is $ 4

Wagner Inc. has $200 in current assets and $125 in current liabilities. Inventory before any changes is $40. Wagner wants to reduce short-term loans (a current liability) and hold less inventory. About how much can Wagner's short-term loans decline without pushing its current ratio above 2.0?
a. ST-loans can fall by about $77
b. ST-loans can fall by about $155
c. ST-loans can fall by about $167
d. ST-loans can fall by about $17
e. ST-loans can fall by about $150
f. ST-loans can fall by about $50
 Wagner Inc. has $200 in current assets and $125 in current

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