A company seeking a line of credit at a bank was turned down. Among other things, the bank stated that the company's 2 to 1 current ratio was not adequate. Give reasons why a 2 to 1 current ratio might not be adequate. What are some actions a company make take to resolve this issue?

Please explain with examples.

Answer rating: 100% (QA)

A current ratio is a financial metric that measures a companys ability to cover its shortterm liabilities with its shortterm assets A ratio of 2 to 1 ... View the full answer