Multiple Choice
Oreo Company has current assets of $20,000,current liabilities of $8,000,and long-term liabilities of $3,000.Oreo wants to buy new equipment.How much of its existing cash can Oreo use to acquire equipment without allowing its current ratio to decline below 2.0 to 1?
A) $4,000
B) $8,000
C) $10,000
D) $12,000
Correct Answer:
Verified
Correct Answer:
Verified
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