16. Which one of the following statements is correct? A. If the total debt ratio is greater than 50, then the debt-euity ratio must be less than 10 B. Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. C. The debt-equity ratio can be computed as the equity multiplier minus 1 D. An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity E. An increase in the depreciation expense will affect the cash cov- eage ratio. 17. If a firm has a debt-equity ratio of 4.0, then its total debt ratio must be which one of the following? De v-ea ratro4 T6drs Total dest tt A. 0.2 B. 0.8 C. 1.0 D. 1.6 Tuhel . 2.0 18. Beach Wear has current liabilities of $490, 000, a quick ratio of 1.2, in- ventory turnover of 1.5, and a current ratio of 2.9. What is the cost of goods sold? 12= 1421000-X 490,000 568,000= 14210oo y =833,000 CA-Inu 1 C H90, 000 83.00 A. $999, 600 B. $1,060, 000 DRE12 5 Loas TTE1.5 C. $1,249, 500 D. $1,400, 000 A CR-29- 219. Russell's Deli has cash of $500, accounts receivable of $100, accounts E. $1,560, 000 payable of $210, and inventory of $409. What is the value of the quick Yel 20 ratio? CA-I Cash 500 A. 0.31 gL 5004106)- 404 AR=100 AP-210 210 210 InN 409 KA