Finest Ingredients Corporation has current assets of $180,000, total assets of $210,000, current liabilities of $110,000, and total liabilities of $115,000. The company is trying to obtain a bank loan for $40,000 which would be financed over six months. The terms of the loan agreement specify that the company's current ratio cannot fall below 1.5. Calculate the current ratio before and after the loan. Do you think the loan will be granted?

Answer rating: 100% (QA)

To calculate the current ratio before and after the loan well use the formula Curren... View the full answer