Chapter 17 Essay Question (2).docx - Chapter 17 Essay...

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Chapter 17 Essay Question Answer the following two questions. Each question should be one or two full paragraphs. Note that a single sentence does NOT constitute a paragraph! Submit your answers using this sheet in the space below via Blackboard. 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 current assets of $150,000 (including inventory valued at $125,000) and $85,000 in current liabilities. Both businesses have applied for loans. 1. Calculate the current ratio for each company. Which company is more likely to get the loan based on this value? Explain why.

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