b. Show how information from financial ratios can indicate whether Salvador Industries can manage an unusual and unexpected event, such as the flood, without threatening its existence as a viable business. Calculate the current ratio. The current ratio is 5.59 (Round to two decimal places as needed.) Now calculate the acid-test ratio. The acid-test ratio is 3.50 (Round to two decimal places as needed.) Now calculate the equity ratio, The equity ratio is 0.58 (Round to two decimal places as needed.) Now find the return-on-assets ratio. The return-on-assets ratio is 6.81 %. (Round to two decimal places as needed.) Use the financial ratios to indicate whether Salvador Industries can manage an unusual and unexpected event, such as the flood, without threatening its existence as a viable business. Select all that apply. A. The equity ratio is very high, indicating the company does not rely on debt financing, which makes it easy to cover a loss from an extraordinary event. B. The return-on-assets ratio is high, which means a loss from an extraordinary event would take only a small portion of its pre-tax income. C. The equity ratio is slightly low, indicating reliance on debt financing, which makes it harder to cover a loss from an extraordinary event. D. The current and acid test ratios are high, which mean the company has considerable security in meeting obligations and losses from extraordinary events. E. The current and acid test ratios are both low, which means the company may not have the assets to cover obligations or losses from extraordinary events. OF. The return-on-assets ratio is low, which means a loss from an extraordinary event would take a large portion of its after-tax income. a