1- The cash flow coverage ratio

Multiple select question.

A - is calculated as cash flows before interest payments and taxes divided by interest expense.

B - uses operating cash flows before interest payments.

C - is calculated as operating income before interest payments and taxes divided by interest expense.

D - is better to use than the interest coverage ratio when the company experiences rapid growth.

2 - A company's operating cycle is determined by

Multiple choice question.

A - how long it takes to sell inventory plus pay its suppliers.

B - how long it takes to sell inventory plus collect cash from customers.

C - how long it takes to purchase inventory plus pay its suppliers.

3- Long-term solvency ratios include

Multiple select question.

A - long-term asset turnover.

B - interest coverage.

C - long-term debt to tangible assets.

D - current ratio.

4 - Information about Peralta Enterprise's operations include: 65 days to sell inventory, 84 days to collect cash from customers, and 45 days to pay for inventory purchases. What is the company's operating cycle?

Multiple choice question.

129 days

149 days

194 days

110 days