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
a
Business
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