Q3. R Montague and J Capulet distribute films to movie theatres. Following are the current assets for each distributor at the end of the year. (All amounts are in millions of dollars)

Required: As a loan officer for First National Bank of Verona Heights, assume that both companies have come to you asking for a $10 million six-month loan. If you could lend money to only one of the two, which one would it be? Justify your answer by writing a brief memo to the president of the bank.