Biology Forums - Study Force

Refer to the following information
      Smith Office Supply   Industry Mean
   Current ratio   2.3   1.8
   Quick ratio   .4   .8
   Average inventory turnover   2.0   3.9
   Net sales-to-working capital   4.0   7.8
   Debt-to-net worth ratio   3.0   1.7
   Net profit to equity ratio   40.1 percent   22.2 percent

Which of the following statements is most likely false?
A) Smith relies heavily on inventory to meet its debt obligations.
B) Smith is sufficiently capitalized.
C) Smith's sales are inadequate.
D) Smith's prices may be too high and/or the inventory too "stale."

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