The owners of a bakery need to borrow money to purchase a new oven.The bakery has current assets of $52,000 and current liabilities of $15,000.How much can they borrow if they want their current ratio of assets to liabilities to be no less than 2.6? (Note: The funds they receive are considered as current assets and the loan as a current liability.)

Question

Quizplus · Accepted Answer

The Answer of The owners of a bakery need to borrow money to purchase a new oven.The bakery has current assets of $52,000 and current liabilities of $15,000.How much can they borrow if they want their current ratio of assets to liabilities to be no less than 2.6? (Note: The funds they receive are considered as current assets and the loan as a current liability.)

The Owners of a Bakery Need to Borrow Money to Purchase