Q9 (3 points)
Please submit one screenshot for Q9 from your EXCEL worksheet
Question 9 (3 marks)
Relaxation Co. 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 dept ratio before and after the bank loan. Do you think the loan will be
granted? Explain why using bullet form.