Understanding Business 10th Edition by William Nickels,James McHugh,Susan McHugh

Exercise 11

Potz and Pans, a small gift shop, has current assets of $45,000 (including inventory valued at $30,000) and $9,000 in current liabilities. WannaBees, a specialty clothing store, has current assets of $150,000 (including inventory valued at $125,000) and $85,000 in current liabilities. Both businesses have applied for loans. Click the Calculators box on the toolbar at www.bankrate.com and then click on Small Business to answer the following questions:
Calculate the current ratio for each company. Which company is more likely to get the loan Why