Chapter 17 Essay Question
Answer the following two questions.
Each question should be one or two full paragraphs.
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
Both businesses have applied for loans.
Calculate the current ratio for each company.
Which company is more likely to get
the loan based on this value?