The cash-to-cash operating cycle is the number of days' sales in

a.inventory and receivables.

b.receivables and plant assets.

c.receivables and working capital.

d.inventory and plant assets.

The concept of leverage is that

a.a high debt-to-equity ratio is favorable.

b.it is unfavorable to borrow funds rather than raise the capital from stockholders.

c.it is appropriate to borrow as long as the lender approves the loan.

d.it is appropriate to borrow if the return on the assets is greater than the cost of the financing.

Which of the following ratios is the best measure in analyzing a company's ability to pay interest on long-term debt and to repay the long-term debt over several years?

a.Debt service coverage ratio.

b.Times interest earned ratio.

c.Acid-test ratio.

d.Debt-to-equity ratio.