John Began His Company Making Herb Vinegars from a Recipe

Multiple Choice

John began his company making herb vinegars from a recipe his grandmother had given him. As demand grew, he had to buy a large commercial kitchen. Which of the following ratios would a banker be most interested in before allowing John to borrow $500,000?

A) Liquidity ratio
B) Balance sheet
C) Return on investment
D) Operating ratio
E) Debt ratio