Current assets and current liabilities remain constant

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Reference no: EM132068756

(Liquidity analysis) Airspot Motors, Inc. has $ 2,145, 000 in current assets and $ 858, 000 in current liabilities. The company's managers want to increase the firm's inventory, which will be financed using short-term debt. How much can the firm increase its inventory without its current ratio falling below 2.0 (assuming all other current assets and current liabilities remain constant)?

Reference no: EM132068756

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