If the Only Information You Are Given About Ryan Corporation,a

question 217

Multiple Choice

If the only information you are given about Ryan Corporation,a large public company in business for many years,is that it has a current ratio of 2.9,what could you infer from this?

• A)It can likely meet its short-term obligations without difficulty.
• B)You could determine that Ryan has too much liquidity because the average current ratio among firms in Ryan's industry is 2.0.
• C)Nothing,you would also need the current ratios from the last few years of the S&P 500 Index.
• D)You could determine that Ryan is running a great risk that it will not be able to pay short-term liabilities when they come due.

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The leading body of the Federal Reserve System, overseeing the Federal Reserve Banks and helping implement monetary policy.