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PO 16 5 SEX Given the following information, which is true? Company 1 - Current Ratio: 0.4, Times Interest Earned: 1.7, Inventory Turnover: 5.2 Company

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PO 16 5 SEX Given the following information, which is true? Company 1 - Current Ratio: 0.4, Times Interest Earned: 1.7, Inventory Turnover: 5.2 Company 2 - Current Ratio: 3.4, Times Interest Earned: 4.3, Inventory Turnover: 4.5 Company 3 - Current Ratio: 1.2, Times Interest Earned: 2.2, Inventory Turnover: 5.5 O Company 1 is more efficient at managing inventory than Company 2 O Company 2 is the least liquid firm Company 2 is unable to make interest payments on its debt Company 1 is the most liquid firm Lenders would view Company 3 as higher risk of default than Company 1

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