Essay
Suppose a business has current assets of $75,000 and current liabilities of $50,000. The business is trying to obtain a bank loan for $25,000, which would be financed over six months. The terms of the loan agreement specify that the business's current ratio cannot fall below 1.50 at any time. Calculate the current ratio before and after the loan. Do you think the loan will be granted?
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Current ratio before the bank loan = $75...View Answer
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Correct Answer:
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