Professor Christopher Zilg
Homework Chapter 17
Taking it to the Net
Potz and Pans, a small gift shop, has current assets of $45,000 (including inventory
valued at $30,000) and $9,000 in current liabilities. WannaBees, a specialty clothing
store, has a current asset of $150,000 (including inventory valued at $125,000) and
$85,000 in current liabilities. Both businesses have applied for loans.
Calculate the current ratio for each company. Which company is more likely to get
the loan? Why?