Calculate the current ratio for company

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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 tool bar at www.bankrate.com and then go to small business to answer the following questions:

Calculate the current ratio for each company.

Which company is more likely to get the loan? Why?

Reference no: EM133045736

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