Level of inventories can firm carry without current ratio

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Reference no: EM131850197

Aylward, Inc. currently 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 by a short-term note with the bank. What level of inventories can the firm carry without its current ratio falling below 2.0?

Reference no: EM131850197

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