4) An increase in accounts receivable is added to net income. Question 18 (1 point) Which of the following statements is not true? 1) The higher a company's debt to total assets ratio, the lower the company's times interest earned ratio will be. 2) The times interest earned ratio is calculated by dividing the sum of net income, interest expense, and income tax expense, by interest expense. 3) EBIT can be calculated by adding interest expense and income tax expense to net income. 4) The times interest earned ratio gives an indication of a company's ability to meet interest payments as they come due. Question 19 (1 point) In 2019, Toys2me Ltd. had total liabilities of $4,275 million and total assets of $7.899 million. In 2020, their total liabilities were $3.535 million and total assets were $7,963 million. Which of the following statements is true? 1) The debt-to-equity ratio in 2019 means that Toys2me has less than half of its