Analysis of the Mendoza Company financial statements over five years reveals that sales are growing steadily, the debt ratio is higher than the industry average and is increasing, interest coverage is decreasing, return on total assets is declining, and earnings per share of common stock is decreasing. Considered together, these ratios suggest that (pp. 807-810)

a. Mendoza should pursue collections of receivables more vigorously

b. Competition is taking sales away from Mendoza

c. Mendoza is in a declining industry

d. The company's debt burden is hurting profitability