Question $10(5$ points$)$

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As the banker, would you approve Mr$.$ Clarkson's loan request? Choose the response that best fits with your recommendation.

Yes, it seems likely that Mr$.$ Clarkson will be able to repay his loan, and our bank would like to have Mr$.$ Clarkson as a new customer.

Yes, but I would only approve a portion of his loan request, with the stipulation that the remainder of the loan amount would be approved if he improves his accounts receivable and inventory levels.

No$,$ the long$-$term liabilities position of Clarkson Lumber is too high for the company to take on any additional debt at this time.

No$,$ I believe that Mr$.$ Clarkson's business is in severe financial distress.