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What is the maximum amount of short-term commercial loan

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Question - A Company's policy is to maintain a current ratio of at least 2:1. At present, its current ratio is 2.5 is to 1. If current liabilities at present amounts to P250,000, what is the maximum amount of short-term commercial loan that can be obtained by the firm to finance inventory expansion without violating its current ratio policy?

a. P125,000

b. P0

c. P62,500

d. P50,000

Reference no: EM133126291

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