You enter negotiations with company #2 and would like to know if it is indeed worth purchasing. Besides investing in land inventory for future projects, the key to your success in real estate investing has been to manage your short-term liabilities. You have heard about many real estate developers who went out of business because they were unable to cover short-term debt, prompting the banks that secured their loans to call the loans as immediately due. Since the companies couldn't pay off the loans, they had to declare bankruptcy. To make sure the company you are considering buying can cover its short-term debt obligations, you should look at: a. The current ratio, which is for the company you are evaluating O b. The debt to equity ratio, which is 75 for the company you are evaluating, O c The return on sales, which is 10% for the company you are evaluating O d. None of the ratios. They do not help you evaluate the company's ability to cover short-term debt obligations