Question $25$

$4$ pts

If the only information you were given about Ryan Corporation, a large public company in business for many years, was that had a current ratio of $2\mathrm{.}9,$ what could you determine from this?

Nothing. you would also need the current ratio's from the last few years of Ryan corporation and their competitors.

You could determine that Ryan has an activity problem because Ryan's current ratio is greater than $2$ which is the rule of thumb for the current ratio.

You could determine that Ryan has a liquidity problem because Ryan's current ratio is greater than $2$ which is the rule of thumb for the current ratio.