1. Which of the following would indicate an improvement in a companys financial position, holding other things constant? Explain your answer by supporting why each change is positive or negative for the company.

	a.	The inventory and total assets turnover ratios both decline.
	b.	The total debt to total capital ratio increases.
	c.	The profit margin declines.
	d.	The times-interest-earned ratio declines.
	e.	The current and quick ratios both increase.