4. Assume a firm's current ratio equals 3.5. Which of the following actions would increase it? A Discarding and writing off spoiled inventory. B) Receiving a full cash payment on an account receivable. C) Paying off a short-Aprm bank loan with the proceeds from new long-term debt D) Purchasing new fixed assets using the proceeds from a new stock issue, E) Buying inventory on credit, thereby increasing accounts payable. 5. A firm with net income of $80.000 pays out 32% of net income in dividends. If the firm has 40.000 shares of common stock outstanding, what is the dividend paid per share of stock? A) $0.30 B) $0.44 C) $0.64 D) $1.23 E) $2.77 6. The times interest earned ratio is 5.0. Based on this ratio, a creditor knows that EBIT must decline by more than before the firm will be unable to cover its interest expense. A) 33% B) 67% C 75% D) 80% E 90% / 7. A firm has current liabilities of $700, a current ratio of 1.4, and a quick ratio of 0.7. Calculate the level of inventory for this firm. A) $280 B) $340 $490 $550 $780