Port West Trading Limited

$2014$

$2015$

$2016$

Sales

$1,400,000$

$1,500,000$

$1,720,000$

Cost of goods sold

$1,316,000$

$1,450,000$

$1,680,000$

$84,000$

$50,000$

$40,000$

Inventory

$140,000$

$180,000$

$210,000$

Accounts receivable

$100,000$

$140,000$

$200,000$

Cash

$10,000$

$0$

$0$

Current assets

$250,000$

$320,000$

$410,000$

Accounts payable

$79,850$

$85,000$

$90,000$

Short term debt

$0$

$34,850$

$79,850$

Provisions$-$ returns$/$refunds

$1,400$

$1,500$

$1,720$

Current liabilities

$81,250$

$121,350$

$171,570$

Assume you are the auditor of Port West Trading Limited. Management provides you with a series of explanations for the $2016$ financial results. Which ratio would be the least useful for measuring financial stability?

Question $9$Select one:

a$.$

Borrowings $/$ total assets.

b$.$

Interest cover.

c$.$

Equity to total assets.

d$.$

Quick ratio.

e$.$

Debt to equity.