CASE STUDY POTENTIAL RESOLUTIONS 2 calculated by dividing current liabilities from current assets which measures the company's ability to pay off short-term liabilities with current assets. The acid test ratio is 0.71 calculated by dividing current liabilities from the difference of inventories from current assets which measures a company's ability to pay off short term liabilities with quick assets. ABCTech's acid test ratio of less than 1.0 implicates that they don't have enough liquid assets to pay their current liabilities. In addition, acid test ratio is lower than current ratio proposes that ABCTech is highly dependent on their inventory. Potential Resolutions Financial ratios analyses are used by investors and lenders, it is critical that ABCTech to have a balance between meeting obligations, liquidity and profitability (Rashid, 2018). It is a recommendation to complete financial documentation to submit for loan procurement to improve cash flow. This will allow ABCTech to hire the sales marketing manager focusing on marketing, customer relationship and retention to support the sales of current inventories and forecasted revenues for upcoming year. It is also recommended to conduct risk management analysis to recognize and develop strategies to reduce or avoid risks. It includes operational, marketing, human resource and financial risk. Based on research, brand awareness is critical developing the risk of losing customers, the risk of not developing the product and an unreachable market share due to the lack of active marketing (Limbong, et al. 2019). It is also important to review financial viability and identify financial items that require attention. Based on research findings, the types of affecting risks are the risk of income leakage, cash calculation, liquidity management and compliance in financial reporting are types of affecting risk (Limbong, et al. 2019). An approximate $250,000 of working in progress inventory is available for year end. Questions to ask are whether they are ordered but not delivered, too