We are evaluating whether or not to make a loan to a company. Indicate whether each of

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We are evaluating whether or not to make a loan to a company. Indicate whether each of the following separate trends would make us more or less likely to make the loan.

a. Current ratio is increasing, from 0.8 to 1.3.

b. Acid-test ratio is increasing, from 0.6 to 1.0.

c. Times interest earned is decreasing, from 9.0 to 6.2.

d. Total asset turnover is decreasing, from 0.5 to 0.3.

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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Question Posted: Oct 27, 2021 02:50 AM

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We are evaluating whether or not to make a loan to a company. Indicate whether each of

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a More likely An increase in the current ratio suggest...View the full answer

Fundamental Accounting Principles

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