Question $(10)$

Directions: Click the Case Link above and use the information provided in the Melissa Carter case to answer this question:

Which of the following statements best describes Melissa Carter's coverage position?

Melissa Carter's coverage position is barely adequate to meet total current liabilities, in the absence of regular income.

Melissa Carter's coverage position is adequate to meet total current liabilities if her real estate investments and included.

Melissa Carter's coverage position is unusually strong; her significant investment in marketable securities more than offsets her current

liabilities.

Melissa Carter's dependence on the continued successful operations of Carter Distributors, Inc, diminishes the strength of her coverage

position.