Given the following information, which is true? Company 1 - Current Ratio: 2.3x, Times Interest Earned: 3.2x, Inventory Turnover: 6.0x

Company 2 - Current Ratio: 0.7x, Times Interest Earned: 1.4x, Inventory Turnover: 3.2x

Company 3 - Current Ratio: 1.3x, Times Interest Earned: 5.7x, Inventory Turnover: 3.4x

A) Company 2 has the highest probability of defaulting on its debt

B) Lenders would view Company 3 as higher risk of default than company 2

C) Company 1 is the least efficient at managing inventory

D) Company 2 is the most liquid firm

E) Company 3 is more liquid than Company 1