Which one of the following statements is correct?

A). An increase in the depreciation expense will not affect the cash coverage ratio.

B). The equity multiplier can be computed as 1 plus the debt-equity ratio.

C). Long-term creditors would prefer the times interest earned ratio be 1.2 rather than

1.35.

D). Increases in accounts payable will reduce the cash flows to a business during an

accounting period.

E). An equity multiplier of 1.5 means a firm has $1.50 in sales for every $1 in equity.