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

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

Total current assets $33 $33 Required As a loan offi cer for 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.

Ethical Decision Making AppendixLO1