2 Beta Co. has a loan covenant requiring it to maintain a current ratio of 1.5 or better. As Beta approaches year end, current assets are $20 million ($1 million in cash. $9 million in accounts receivable, and $10 million in inventory) and current liabilities are $13.5 million. I You are required: 1. Calculate Beta's current ratio and quick ratio. (10 marks) 2. Which of the following transactions would Beta Co. most likely enter to meet its loan covenant? a) Sell $1 million in inventory and deposit the proceeds in the company's bank accounts (8 marks) b) Borrow $1 million short term and deposit the finds in their account. (8 marks) c) Sell $1 million in inventory and pay off some of its short-term creditors. (8 marks) 3. If Beta sells $2 million in inventory on credit, how will this affect its current ratio? (8 marks) 4. If Beta sells $1 million inventory and pays off accounts payables, how will this affect its quick ratio? (8 marks) Total 50 marks