Refer to the financial statements from Culinary Delights Company.
REQUIRED:
A Calculate the company's current and acid-test ratios for 2016. Would you lend this company $4,000,000 at 10% over a one-year period? Explain. Note: The statements provided are in "thousands."
B Suppose the company has credit terms of 20 days and all sales are on credit. During 2016, what credit management problems does this company have, if any? Explain

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The Answer of Refer to the financial statements from Culinary Delights Company.
REQUIRED:
A Calculate the company's current and acid-test ratios for 2016. Would you lend this company $4,000,000 at 10% over a one-year period? Explain. Note: The statements provided are in "thousands."
B Suppose the company has credit terms of 20 days and all sales are on credit. During 2016, what credit management problems does this company have, if any? Explain

Refer to the Financial Statements from Culinary Delights Company