Question: An underwriter is attempting to conduct ratio analysis on a company. The underwriter notices that the company has $2 million in cash, $1 million in

An underwriter is attempting to conduct ratio analysis on a company. The underwriter notices that the company has $2 million in cash, $1 million in marketable securities, $3 million in inventory, $2 million in accounts receivable, and $7 million in current liabilities. Which one of the following conclusions can the underwriter reach by calculating liquidity ratios? Select one: A. The company may not be able to meet its short term obligations because its acid test ratio is less than one. B. The company should be able to meet its short term obligations because its working capital ratio is greater than one. C. The company should able to meet its short term obligations because its acid test ratio is greater than one. D. The company may not be able to meet its short term obligations because its current ratio is less than one

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