Understand how liquid your cousins firms assets

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Reference no: EM131020419

Here is a scenario for you to ponder. You are in a healthy position as far as your finances are concerned and your cousin approaches you for a favor. He has a clothing store and it is having a difficult time, currently, because he is experiencing a slow sales period and he needs a loan to help them get through this period of time. Being cautious, you understand that you want your money back, so you make sure that you sign a contract. Before you do you want to understand how liquid your cousins firms assets arwe is at this point. Which would you be more interested in looking at, the current ratio or the quick ratio? Why?

Reference no: EM131020419

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