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