Financial Statement Analysis 45-68 45. ALPS Company is an American company reporting under US GAAP and is involved in the sale of handbags. The revenue earned from the sale of the bags is invested in a market mutual fund that invests in short-term debt securities, such as commercial paper. The fund yields the company a shameful 0.4% interest, not even enough to money US Treasury bills and is most likely: A. Operating income B. Non-operating income C. None of the above 46. An anal yst at a rating agency is evaluating the credit quality of three firms in the retail sector. Some of the ratios of these firms are given in the following table: Indusiy Aveage Chui Sr rs at Stores Co 0.5 0.6 1.5 1.3 0.8 Debt-to-assets Debt-to-equity Interest Coverage Return on Asset 0.4 0.67 1.8 14.50% 1.6 11.75% 12% Using the given information, the firm with the highest credit quality is most likely A. Chain Stores Co. B. Hyper Stores Co. C. Fast Stores Co