Level Company's current ratio is 2.5 to 1. Level's current liabilities are $252,000. Loan provisions require that Level's current ratio not drop below 1.5 to 1. What is the maximum additional short-term debt that Level may incur? a. $168,000 b. $378,000 c. $420,000 d. $630,000

Level Company's current ratio is 2.5 to 1. Level's current liabilities are $252,000. Loan provisions require that Level's current ratio not drop below 1.5 to 1. What is the maximum additional short-term debt that Level may incur? a. $168,000 b. $378,000 c. $420,000 d. $630,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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a. $168,000

b. $378,000

c. $420,000

d. $630,000

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