Question 37 (0.5 points) Suppose in 20012 total equity and liabilities for a business amounted to $600,000 and total liabilities amounted to $400,000. The following year, total equity and liabilities increased to $700,000 while liabilities increased to $450,000. According to the vertical analysis method, has the financial situation become better or worse? Better because total equity reduced as a percentage of total equity and liabilities. Better because total liabilities increased faster than total equity and liabilities. Better because the company was able to finance its operations with more debt. Better because the total liabilities reduced as a percentage of total equity and liabilities. Question 28 (0.5 points) Given the following information, what is the company's quick ratio? Current assets (includes $600,000 receivables of $100,000) Current liabilities 400,000 Cash 300,000 Inventories 200,000 0.86 1.00 1.29 1.35 Question 29 (0.5 points) The times-interest-earned ratio helps to gauge how much cash will be available to the business to pay dividends, to pay the principal on the loan and to reinvest in the business after paying the finance costs. 1) True 2) False Question 30 (0.5 points) Which of the following is included in the adjustments in non-cash working capital accounts? cash trade receivables revenue long-term borrowings Pages