Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

A corporate loan applicant has cash of $40, receivables of $50 and inventory of $20. The applicant also has current debts of $50. If the bank's policy requires a current ratio of 1.75 or better and an acid test ratio of 1.25 or better would the applicant receive the loan?

A) Yes because the applicant's current ratio and acid test ratios are acceptable.

B) No because the applicant's current ratio and acid test ratios are both unacceptable.

C) No because although the applicant's current ratio is acceptable, its acid test ratio is not.

D) No because although the applicant's acid test ratio is acceptable, its current ratio is not.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M941390

Have any Question? 


Related Questions in Basic Finance

Capital investment analysisbramer corporations controller

Capital Investment Analysis Bramer Corporation's controller, Mara, was asked to prepare a capital investment analysis for a robot-guided aluminum window machine. This machine would automate the entire window-casing manuf ...

6 cs of credit as defined by the author look at each one

6 C's of credit, as defined by the author. Look at each one and evaluate its merit. Pick two of the six and explain why you think it is vital that an underwriter would use this and how. Finally, pick which of the six you ...

Suppose you are about to borrow 15000 for four years to buy

Suppose you are about to borrow $15,000 for four years to buy a new car. Briefly explain which of these situations you would prefer to be in: a. The interest rate on your loan is 10%, and you expect the annual inflation ...

Investigators studying the mass transfer from single

Investigators studying the mass transfer from single spheres recommended the generalized equation As discussed in section 30.1, the value of 2 can be derived theoretically by considering the molecular diffusion from a sp ...

1 consider the similarities and differences between basic

1. Consider the similarities and differences between basic research and applied research. What does each contribute to our knowledge about behavior? 2. Describe the characteristics of descriptive, correlational, and expe ...

Sunshine farms withering since naftasunshine farms incis a

SUNSHINE FARMS WITHERING SINCE NAFTA Sunshine Farms Inc.is a fourth-generation family business located in south Florida. Sunshine began as a small farm devoted to citrus fruits and vegetables, and over the years the comp ...

A project has a projected sales quantity of 810 units a

A project has a projected sales quantity of 810 units, a sales price of $56 a unit, a variable cost per unit of $38, and fixed costs of $5,200. All estimates are within a plus or minus range of 3 percent. You would like ...

Many grocery stores and large retailers such as wal-mart

Many grocery stores and large retailers such as Wal-Mart and K-Mart have installed self checkout systems so shoppers can scan their own items and cash out themselves. How do customers like this service and how often do t ...

Abc publishing sells maps for 700 each the company is

ABC Publishing sells maps for $7.00 each. The company is currently breaking even with sales of 200,000 maps per year. ABC's variable cost per map is currently $5.00. Management has estimated that if production costs are ...

1 distinguish between construct and criterion-related

1. Distinguish between construct and criterion-related validity. 2. Distinguish between convergent and discriminant validity. Do these terms refer to types of construct validity or criterion-related validity?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro