Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Nelly Inc. reported net credit sales of $24,000,000 and cost of goods sold of $18,000,000 for the year. The average inventory for the year was $6,000,000.
-A liquidity ratio measures the

A) net income or operating success of a company over a period of time.
B) ability of the company to survive over a long period of time.
C) short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash.
D) ability of a company to raise capital.