The Following Information Was Included in a Note to the 2015

The following information was included in a note to the 2015 financial statements of Romeo Productions: The company has a loan agreement with First National Bank that states:
1. The current ratio must be $2.0$ or higher at all times.
2. The debt-to-equity ratio must not exceed $0.7$ at any time.
3. The times interest earned ratio must be $5.0$ or higher.
4. The inventory turnover ratio must be $4.0$ or higher. The company's ratios are: current ratio,2.3;debt-to-equity ratio,0.6;times interest earned ratio,7.1;and inventory turnover ratio,3.7.Based on this information,the company was in default of its loan agreement because of the

A) current ratio
B) debt-to-equity ratio
C) times interest earned ratio
D) inventory turnover ratio