Assume that a localrestaurant, likePops, brings toyou, the loan officer at their localbank, a set of financialstatements, as part of their loanrequirements, and the current ratio is less than1:1. What would this indicate toyou?

A.

The company is investing heavily in fixed assets.

B.

The company is highly solvent.

C.

There are not enough current assets to pay off current debt.

D.

The company haslong-term borrowings in excess of fixed assets.

E.

The company has more equity than debt.