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You are a new hired analyst hired by the bank and on your first assignment you are asked to assess two potential loan candidates. Both

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You are a new hired analyst hired by the bank and on your first assignment you are asked to assess two potential loan candidates. Both are in the retail business and after looking at the financial statements you felt the following the following ratios would help you to evaluate and compare the liquidity of the two businesses Business A Business B Current Ratio 1.31 1.84 Quick Ratio 0.80 0.42 Inventory Turnover Ratio 26 Accounts payable turnover Ratio 5.34 44 Required: Write a report to your manager evaluating and comparing the liquidity and activity of the two businesses and decide which company you would rather end money to

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