What should be ex-oil next step


Question: Ex-Oil discovered that the total debt amounted to EUR 350,000, and the total assets amounted to slightly over EUR 1 million. What should be Ex-Oil's next step? a) Investigate alternative financing options for the deal, as Imp-Oil's total debt is too high proportional to its total assets. b) Discuss open unlimited account terms with Imp-Oil, as its total debt ratio suggests a very low level of risk. c) Compare this ratio with similar companies to determine if it is on par with industry ratios. d) Increase production in Venezuela, as Imp-Oil has a large amount of free capital and is likely to invest in future purchases.

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Accounting Basics: What should be ex-oil next step
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