You are the credit manager for Meyer Company. One of your sales staff has made a $60,000 credit sale to Rudy Technology, a manufacturer of small computers. Your responsibility is to decide whether to approve the sale. You have the following data for the computer industry and Rudy:

For Rudy, you have the following data for the year ended December 31, 2019:
Sales revenue .................................................. $4,120,000
Net income ....................................................... $367,000
Total assets .................................................... $3,752,000
Current ratio ........................................................... 1.79
Debt to equity ratio .................................................... 0.42
Inventory turnover ratio .............................................. 1.83
Accounts receivable turnover ratio .................................. 3.71
The salesperson believes that Rudy would order about $240,000 per year of materials that would provide a gross margin of $40,000 to Meyer if reasonable credit terms could be arranged.
Required:
State whether you would grant authorization for Rudy to purchase on credit and support your decision?

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For the Years 2015–2019 Average annual sales growth Average annual operating income growth Average annual net income growth Average annual asset growth Average debt to equity ratio Average current ratio Average inventory turnover ratio Average accounts receivable turnover ratio Industry 12.6% 11.2% Rudy 16.8% 10.2% 15.3% 13.9% 9.9% 0.36 4.12 2.61 3.89 0.29 3.88 2.19 4.11