Nt1310 Unit 4 Case Study
Unit 4 – Written Assignment
The Internet in Action
11/18/12
Question #1 A) Thingamajigs and Things has total assets of $45,000 and $9,000 in liabilities. This gives a current ratio of 5.00:1. Wannabees has total assets of $150,000 and $85,000 in liabilities. This gives a current ratio of 1.76:1. Thingamajigs and Things is more likely to be approved for a loan, because it has a higher current ration. This means that their assets are higher than their liabilities (what they owe), and they are more likely to be able to make payments. B) Thingamajigs and Things has total assets of $45,000, inventory valued at $30,000, and $9,000 in liabilities. This gives a current ratio of 1.67:1. Wannabees has total assets of $150,000, inventory
The Internet in Action
11/18/12
Question #1 A) Thingamajigs and Things has total assets of $45,000 and $9,000 in liabilities. This gives a current ratio of 5.00:1. Wannabees has total assets of $150,000 and $85,000 in liabilities. This gives a current ratio of 1.76:1. Thingamajigs and Things is more likely to be approved for a loan, because it has a higher current ration. This means that their assets are higher than their liabilities (what they owe), and they are more likely to be able to make payments. B) Thingamajigs and Things has total assets of $45,000, inventory valued at $30,000, and $9,000 in liabilities. This gives a current ratio of 1.67:1. Wannabees has total assets of $150,000, inventory