Key ratios for the Acme Company are as follows:

Ratio 2015 2014 2013 2012 2011 Ind. Ave.

Current Ratio 1.6 1.7 1.8 1.9 2.0 2.1

Quick ratio 1.6 1.7 1.8 1.9 2.0 2.1

Cash Ratio 1.2 1.3 1.4 1.5 1.7 1.6

TIE 4.6 4.8 4.8 4.9 5.0 4.4

Debt Ratio (in %) 52.2 50.1 48.8 44.4 43.4 43.3

Identify the true statement:

Select one:

A. The current ratio is exhibiting a favorable pattern

B. The company has obsolete inventory

C. The company is likely now holding less cash and/or marketable securities than its competitors

D. Acmes liquidity position is very strong

E. This company can not cover its short term debts/liabilities