Calculate the current ratio before and after the loan


Beta Cassette Corporation has current assets of $180,000, total assets of $210,000, current liabilities of $110,000, and total liabilities of $115,000. The company is trying to obtain a bank loan for $40,000 which would be financed over six months. The terms of the loan agreement specify that the company's current ratio cannot fall below 1.5. Calculate the current ratio before and after the loan. Do you think the loan will be granted?

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Accounting Basics: Calculate the current ratio before and after the loan
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