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The following information pertains to Greenwich Company. Balance Sheet Assets Year 2 Year 1 Cash and short-term investments $ 45,000 $ 35,000 Accounts receivable (net)

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The following information pertains to Greenwich Company. Balance Sheet Assets Year 2 Year 1 Cash and short-term investments $ 45,000 $ 35,000 Accounts receivable (net) 25,000 25,000 Inventory 20,000 20,000 Capital Assets (net) 210,000 215,000 Total Assets $300,000 $295,000 Liabilities and Shareholders' Equity Current liabilities Long-term liabilities Shareholders' equity Total liabilities and shareholders' equity $ 60,000 $ 70,000 90,000 90,000 150,000 135,000 $300,000 $295,000 Statement of Earnings Sales $ 80,000 Cost of goods sold 45,000 Gross margin 35,000 Operating expenses 20,000 Net earnings $ 15,000 Weighted average number of common shares Market price per common share Depreciation, included in operating expenses Required: 6,000 $20 $5,000 1) You are a banker considering a short-term bank loan of $50,000 for Greenwich Company: a) choose the 3 ratios that you believe to be most appropriate in this situation, b) indicate the reason for each choice (not just a description of the ratio)

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