6. Which of the following ratios is not a measure of long-term solvency risk?

1. Debt / Equity Ratio
2. Interest Coverage Ratio
3. Operating Cash Flows to Current Liabilities Ratio
4. Liabilities to Assets Ratio

7. Which of the following states of financial distress would be considered the most troubling for an investor or creditor'

1. failing to make a required interest payment on time
2. paying an accounts payable after the billing date
3. restructuring debt
4. defaulting on a principal payment on debt