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Jayhawks Small gift shop Wildcats Specialty clothing store Total Assets 45,000 150,000 Inventory 30,000 125,000 Liabilities 9,000 85,000 Equity 36,000 65,000 Sales 30,000 100,000 Net
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- Both of the above businesses have applied for a $50,000 loan. Assume you are the Strategic Management Bank and can only give one loan. In order to determine the company that is the better credit risk, you must calculate the following:
- (Hint: Consider the impact of the ratios based upon the assumption of each firm receiving the $50K loan.)
-A.B.C.D.E.F.G.H. Currentratio for Jayhawks
-A.B.C.D.E.F.G.H. Current ratio for Wildcats
-A.B.C.D.E.F.G.H. Quick ratio (acid test) for Jayhawks
-A.B.C.D.E.F.G.H. Quick ratio (acid test) for Wildcats
-A.B.C.D.E.F.G.H. Total debt ratio for Jayhawks
-A.B.C.D.E.F.G.H. Total debt ratio for Wildcats
-A.B.C.D.E.F.G.H. Profit margin for Jayhawks
-A.B.C.D.E.F.G.H. Profit margin for Wildcats
A. .68
B. .56
C. .27
D. 1.61
E. .62
F. 1.48
G. .32
H. 1.10
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