CREDIT ANALYSIS. Saltzman Stereo Shops sells home and automobile stereo components and supplies. Sales have increased by 10% each year for the past 4 years, but net income has been declining by 5% per year over the same period. Total current assets and total current liabilities for Saltzman for the past 4 years are as follows:

Saltzman wants to purchase 50 items of stereo equipment from your firm on credit.
Saltzman says that it will pay for its purchase in 90 days. Would you sell the equipment to Saltzman on credit? Why or why not? l01

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19x3 19x4 19x5 19x6 Current assets Current liabilities $149,000 $168,000 $193,000 $219,000 71,000 112,000 175,000 231,000