Question 2 0 / 1 pts A company has the following financial information for the year ending 31 December 2020: Profit after tax $75,000 Earnings before interest and tax $100,000 Total interest expenses $12,000 Total interest income $2,000 What is the Interest coverage ratio for the year ending 31 December 2020? 8.3 times. 10 times. 6.25 times. 7.5 times. Question 4 0/1 pts A company with a higher current ratio than the industry average implies: On average, the company is more profitable than other firms in the industry. On average, the company has a higher liquidity risk than other firms in the industry. On average, the company has less current assets to pay for its current liabilities than other firms in the industry. On average, the company has a lower liquidity risk than other firms in the industry. Question 5 0/1 pts A company has a debt ratio of 40% in financial year 2020. This means that: 40% of the assets are financed by debts. 40% of the assets are financed by current liabilities. 40% of the assets are financed by equity. 40% of the assets are financed by non-current liabilities. Question 6 0 / 1 pts A company has a return on assets (ROA) ratio of 80% in financial year 2020, compared to the ROA of 60% in financial year 2019. Which one of the following statements is NOT true? The business has higher profitability to asset investment in 2020 compared to 2019. In 2020, for every $100 assets, the business can generate $80 earnings before interest and tax. The business has lower profitability to asset investment in 2020 compared to 2019. In 2019, for every $100 assets, the business can generate $60 earnings before interest and tax. Question 8 0 / 1 pts Avenger Ltd has provided the following information from the latest financial statements: Sales revenue for the year $3,000,000. Cost of goods sold for the year $1,200,000. Profit after tax for the year $900,000. Which one of the following statements is NOT true? Cost of goods sold eats up 30% of sales. Profit margin for the year is 30%. Gross profit margin for the year is 60%. Cost of goods sold eats up 40% of sales. Question 9 0 / 1 pts DC Ltd has generated $1,000,000 sales revenue in 2020. In comparison, the sales revenue in 2019 was $800,000. Which one of the following statements is NOT true? Sales revenue went up by $200,000 in 2020 compared to 2019. Sales revenue has increased 20% from 2019 to 2020. It is a good trend to see sales revenue going up in 2020. Sales revenue has increased 25% from 2019 to 2020