Spinnaker's bank line went from -0- to $3,141K by fiscal year end 1/31/85. At that point, how much additional funds could they borrow under the existing terms of their bank line assuming no change in accounts receivable?
1) None of these are correct -0- since they are already using 80% of their receivables
2) 20% of their remaining capacity under their line
3) An additional 785K based on Accounts Receivable of 3,926K
4) 10% based upon the bank's agreed-upon over-advance