20.An analyst working for a potential creditor would MOST LIKELY consider a decrease in which of the following ratios to be positive news? a.Interest Coverage b.Debt to total assets c.ROA

22.Like many technology companies, Cinnamon Corp. operates in an environment of steadily declining prices. Its reported profits will tend to be highest if it accounts for inventory using: a.FIFO b.LIFO c.Weighted Average Cost d.Specific Identification

36.You are evaluating the solvency and liquidity of XYZ Co. in light of the following information: FY 2017 FY 2016 FY 2015 Total Debt $2000 $1900 $1750 Total Equity $4000 $4500 $5000 Your MOST LIKELY conclusion is that: a.The company is becoming less solvent b.The company is becoming less liquid c.The company is becoming more solvent d.The company is becoming more liquid

37.Using the same information as for Question #36, what is the MOST REASONABLY PROBABLE explanation for the financial data? a.The decrease in equity is the result of the decline in the market value of the companys stock. b.The decrease in equity may be the result of recurring losses, payment of dividends greater than net income or repurchase of shares. c.The increase in total debt may mean the company has a higher credit rating in FY 2017 than in FY 2015.