1. Which of the following statement is/are INCORRECT?
   1. High current ratio may also indicate the firm has to much cash and A/R and these liquid assets generally provide low returns Correct
   2. Suppose two firms have identical operating income, a firm uses more debt which will lead to relatively lower profit margin.
   3. Other things being equal, the higher the total debt to the capital ratio, the lower the TIE will be
   4. BEP reflect the earning power of a firms asset after considering the effects of its debt
   5. Both a and c are incorrect statements