Low Carb Corp

question 109

Essay

Low Carb Corp.has current assets of $160,000,total assets of $200,000,current liabilities of $85,000,and total liabilities of $100,000.The company is trying to negotiate a bank loan of $75,000.The terms of the loan require repayment over two years and state that the debt ratio cannot exceed 0.60.Calculate the debt ratio before and after the bank loan.Do you think the loan will be granted?

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Definitions:

Scientific Inquiry

The process of asking questions and conducting investigations and experiments to discover truths and facts about the natural world.

Universal Mental Characteristics

Fundamental cognitive and emotional traits that are believed to be shared among all humans regardless of culture or background.

Evolutionary

Pertaining to the process of evolution; dealing with how organisms develop and change over time according to natural selection and genetic variation.

Energy Drinks

Beverages containing stimulant compounds, typically caffeine, which claim to provide physical and mental stimulation.