5. Ajax Corp's sales last year were $435,000, its operating costs were $362,500, and its interest charges were $12,500. What was the firm's times-interest-earned (TIE) ratio? a. 4.72 b. 4.97 c. 5.23 d. 5.51 e 5.80 Which of the following is not a return on capital: Ia. ROE b. Dividends c. Interest d. Preferred Stock Dividends e. Proceeds of an IPO Below are the 2010 and 2011 year-end balance sheets for Tran Enterprises: Assets: 2011 2010 Cash $ 200,000 $ 170,000 Accounts receivable 864,000 700,000 Inventories 2,000,000 1,400,000 Total current assets $3,064,000 $2,270,000 Net fixed assets 6,000,000 5,600,000 Total assets $9,064,000 $7,870,000 Liabilities and equity: Accounts payable $1,400,000 $1,090,000 Notes payable 1,600,000 1,800,000 Total current liabilities $3,000,000 $2,890,000 Long-term debt 2,400,000 2,400,000 Common stock 3,000,000 2,000,000 Retained earnings 664,000 580,000 Total common equity $3,664,000 $2,580,000 Total liabilities and equity $2,064,000_$7.870.000 The firm has never paid a dividend on its common stock, and it issued $2,400,000 of 10. year, non-callable, long-term debt in 2010. As of the end of 2011, none of the principal on this debt had been repaid. Assume that the company's sales in 2010 and 2011 were the same. Which of the following statements must be CORRECT? a. The firm increased its short-term bank debt in 2011. b. The firm issued long-term debt in 2011. c. The firm issued new common stock in 2011. d. The firm repurchased some common stock in 2011. e. The firm had negative net income in 2011