What is the maximumamount of short term commercial loan


A company's policy is to maintain a current ratio of at least 2:1. At present, its current ratio is 2.5:1. If current liabilities at present amounts to 250000 pesos, what is the maximumamount of short term commercial loan that can be obtained by the firm to finance inventory expansion without violating its current policy?

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Accounting Basics: What is the maximumamount of short term commercial loan
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