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follows:
63. The company’s current ratio as of the balance sheet date is:
a. 2.67:1 c. 2.02:1
b. 2.44:1 d. 1.95:1
64. The company’s acid-test ratio as of the balance sheet date is:
a. 1.80:1 c. 2.02:1
b. 2.40:1 d. 1.76:1
It is the policy of Franz Corp. that the current ratio cannot fall below 1.5 to
1.0. Its current liabilities are P400,000 and the present current ratio is
2 to 1. How much is the maximum level of new short-term loans it can secure
without violating the policy?
a. P400,000 b. P300,000 c. P266,667 d. P800,000