The "current ratio" of a company is the ratio of its current assets to its current liabilities.Suppose a company has current assets of $250,000 and current liabilities of $100,000.If the company wants to make a short-term loan and have their current ratio no less than 2.2,what is the maximum amount it can borrow? (Note: The funds they receive are considered as current assets and the loan as a current liability.)
A) $15,000
B) $20,000
C) $25,000
D) $30,000
E) $33,000
Correct Answer:
Verified
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