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The RRR Company has a target current ratio of 1.8. Presently, the current ratio is 2.5 based on current assets of $6,000,000. If RRR expands its inventory using short- term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached? (Round your answer to the nearest dollar.) $1,426,833 $933,333 $2,100,000 O $2,211,300 $2,361,030

The RRR Company has a target current ratio of 1.8. Presently, the current ratio is 2.5 based on current assets of $6,000,000. If RRR expands its inventory using short- term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached? (Round your answer to the nearest dollar.) $1,426,833 $933,333 $2,100,000 O $2,211,300 $2,361,030

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The RRR Company has a target current ratio of 1.8. Presently, the current ratio is 2.5 based on current assets of $6,000,000. If RRR expands its inventory using short- term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached? (Round your answer to the nearest dollar.) O $1,426,833 $933,333 $2,100,000 $2,211,300 $2,361,030
Transcribed Image Text:The RRR Company has a target current ratio of 1.8. Presently, the current ratio is 2.5 based on current assets of $6,000,000. If RRR expands its inventory using short- term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached? (Round your answer to the nearest dollar.) O $1,426,833 $933,333 $2,100,000 $2,211,300 $2,361,030
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