Liquidity R Montague and J Capulet distribute films to movie theaters. Following are the current assets for each distributor at the end of the year. (All amounts are in millions of dollars.)

Required As a loan officer for the First National Bank of Verona Heights, assume that both companies have come to you asking for a $10 million six-month loan. If you could lend money to only one of the two, which one would it be? Justify your answer by writing a brief memo to the president of the bank.

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Cash Six-month certificates of deposit Short-term investments in stock Accounts receivable Allowance for doubtful accounts Total current assets R Montague J Capulet $10 $ 5 9 0 0 6 15 23 (1) (1) $33 $33