You calculate a current ratio of 1.3 for International Food Corp. and you find that the industry average is 2.1. Which of the following statements is or could be correct? The low current ratio may be of minor concern if the company is the only company in the industry that applies just-in-time with respect to their inventory. To get a better picture of the liquidity situation of the company you should also calculate the quick ratio. The company has a lower liquidity level than the industry. If the company holds large levels of inventory, the company may soon have problems to pay its short-term obligations when they are due. All of the answers are correct The greater the degree of financial leverage employed by a firm, the: lower the probability of bankruptcy lower the potential return to stockholders lower the net working capital lower the potential for financial distress greater the level of debt