A company has current assets of $100,000, total assets of $250,000, current liabilities of $20,000, and long-term liabilities of $50,000. How much of its existing cash can the company use to acquire equipment without allowing its current ratio to decline below 2 to 1?

A. $  40,000
B. $150,000
C. $180,000
D. $  60,000


Answer: D

Business

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