The inventory turnover ratio must be 4.0 or higher. The companys ratios are: current ratio,...
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The inventory turnover ratio must be 4.0 or higher. The companys 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
| 1. current ratio. | |
| 2. debt-to-equity ratio. | |
| 3. times interest earned ratio. | |
| 4. inventory turnover ratio. |
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