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A company asks you to lend them $10,000. The balance sheet of the company shoes their current assets are $55,000 and their current liabilities are
A company asks you to lend them $10,000. The balance sheet of the company shoes their current assets are $55,000 and their current liabilities are $30,000. What is the current ratio, and how would that effect your decision to loan the company money. Select one: O a. Current ratio 1.833 The ratio is over 1, meaning they are struggling to pay their debts, you would be less likely to lend the company money. O b. Current ratio = 1.833 Since the company can cover its current debt, it would increase the likelihood you loan the money to the company. would O c. Current ratio = .545 The current ratio is less than one, making you more likely to lend the company money. 1 O d. Current ratio = .545 The company's assets are much higher than their debts, this would make you more likely to lend the company money
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