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As both a short-term and a long-term creditor concerned about a customer's ability to meet its obligations to you, which of the following combinations of
As both a short-term and a long-term creditor concerned about a customer's ability to meet its obligations to you, which of the following combinations of ratios would you most likely prefer?
Answer current ratio = 1.8; Times Interest Earned = 1.5; Total Debt Ratio = 0.45 | ||
current ratio = 1.5; Times Interest Earned = 0.5; Total Debt Ratio = 0.40 | ||
current ratio = 0.5; Times Interest Earned = 0.5; Total Debt Ratio = 0.35 | ||
current ratio = 1.0; Times Interest Earned = 1.0; Total Debt Ratio = 0.51 |
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