Last year Thatcher Industries had a current ratio of 1.2, a quick ratio of 0.8, and current liabilities of $500,000. Which of the following statements is most correct?
A) If the company obtained a short-term bank loan for $500,000 and used the proceeds to purchase inventory, its current ratio would fall.
B) Last year Thatcher industries had $200,000 in inventories.
C) Last year Thatcher industries had $416,667 in current assets.
D) All of the answers above are correct.
E) Answers a and b are correct.

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The Answer of Last year Thatcher Industries had a current ratio of 1.2, a quick ratio of 0.8, and current liabilities of $500,000. Which of the following statements is most correct?
A) If the company obtained a short-term bank loan for $500,000 and used the proceeds to purchase inventory, its current ratio would fall.
B) Last year Thatcher industries had $200,000 in inventories.
C) Last year Thatcher industries had $416,667 in current assets.
D) All of the answers above are correct.
E) Answers a and b are correct.

Last Year Thatcher Industries Had a Current Ratio of 1