Capital injection to achieve 2:1 current ratio Steps:

• Initial current assets = inventory (2000) + trade receivables (1100) = 3100
• Initial current liabilities = trade payables (1100) + bank overdraft (3100) = 4200
• After injection of X, new assets = 3100 + X, new liabilities = 4200 - X (reduces overdraft)
• Solve (3100 + X) / (4200 - X) = 2 → 3100 + X = 8400 - 2X → 3X = 5300 → X ≈ 1767 Why B is correct:
• $1200 is closest to exact amount needed per formula X = (desired ratio × initial liabilities - initial assets) / (1 + desired ratio) Why the others are wrong:
• A. $1000 yields ratio 4100:3200 = 1.28:1, below target
• C. $1900 yields ratio 5000:2300 ≈ 2.17:1, overshoots minimally but not exact
• D. $2000 yields ratio 5100:2200 = 2.32:1, excessive injection

Final answer: B