Scranton Rubber has $1.5 million in current assets and $650,000 in current liabilities. Their present inventory level is $350,000. They want to increase inventory, and they intend to raise the funds by issuing short-term notes payable. How much can they increase their short-term debt (notes payable) without pushing their current ratio below 2.0?

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The Answer of Scranton Rubber has $1.5 million in current assets and $650,000 in current liabilities. Their present inventory level is $350,000. They want to increase inventory, and they intend to raise the funds by issuing short-term notes payable. How much can they increase their short-term debt (notes payable) without pushing their current ratio below 2.0?

Scranton Rubber Has $1