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16) Assume that you are a Loan Officer at the local bank. Company A wants to get a long-term loan from your bank. Company B

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16) Assume that you are a Loan Officer at the local bank. Company A wants to get a long-term loan from your bank. Company B wants to get a long-term loan from your bank. Company C also wants to get a long-term loan from your bank. The TOTAL DEBT RATIO for Company A is .70 and the TIMES INTEREST EARNED RATIO for Company A is .70 for the year. The TOTAL DEBT RATIO for Company B is.75 and the TIMES INTEREST EARNED RATIO for Company B is 7 for the year. The TOTAL DEBT RATIO for Company C is.65 and the TIMES INTEREST EARNED RATIO for Company C is 1 for the year. The Current Ratio for Company A is 1 for the year. The Current Ratio for Company B is 1 for the year. The Current Ratio for Company C is 1 for the year. Assume that you only have enough money to lend to one company. Which company would you lend to? A), Company A B) Company B C) Company C D) You are indifferent amongst Company A and Company B and Company C. 17) Jacob Inc has the following ratios: Current Ratio 2 Cash Ratio 5 Jacob Inc has CURRENT LIABILITIES - $1,000. Assume that Jacob's Current Assets consists of only Cash, Accounts Receivable, and Inventory. In other words, Current Assets-Cash and Accounts Receivable and Inventory. How much does Jacob hold in Accounts Receivable and Inventory

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