nj

When reviewing a credit application, the credit manager should be most concerned with the applicant's a. profit margin and return on assets. b. price-earnings ratio and current ratio. c. working capital and return on equity. d. working capital and current ratio. Both the current ratio and the quick ratio for Spartan Corporation have been slowly decreasing. For the past two years, the current ratio has been 2.3 to 1 and 2.0 to 1 . During the same time period, the quick ratio has decreased from 1.2 to 1 to 1.0 to 1 . The disparity between the current and quick ratios can be explained by which one of the following? a. The current portion of long-term debt has been steadily increasing. b. The cash balance is unusually low. c. The accounts receivable balance has decreased. d. The inventory balance is unusually high