B. j. industries has a current ratio of 2.5 with 2.5, Ask an Expert

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B. J. Industries has a current ratio of 2.5, with $2.5 million in current assets. Due to sales growth, it wants to expand accounts receivable and inventories by taking on additional short-term debt. If it wants to maintain a minimum current ratio of 2.0, what is the maximum additional short-term funding it can borrow?

A. $750,000

B. $350,000

C. $150,000

D. $500,000

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