Identify the true statement(s):

Select one:

A. We generally want the TIE to be a high number and we want it to be stable (not very volatile)

B. A TIE that is highly variable may be revealing a company that has an erratic NOI

C. For ROA and ROE, the higher the better!

D. If a company has negative working capital, its current ratio is less than 1.0.

E. All of these statements above are true

Key ratios for the Acme Company are as follows:

Ratio 2015 2014 2013 2012 2011 Ind. Ave.

Current Ratio 1.6 1.7 1.8 1.9 2.0 2.1

Quick ratio 1.6 1.7 1.8 1.9 2.0 2.1

Cash Ratio 1.2 1.3 1.4 1.5 1.7 1.6

TIE 4.6 4.8 4.8 4.9 5.0 4.4

Debt Ratio (in %) 52.2 50.1 48.8 44.4 43.4 43.3

Identify the true statement:

Select one:

A. The current ratio is exhibiting a favorable pattern

B. The company has obsolete inventory

C. The company is likely now holding less cash and/or marketable securities than its competitors

D. Acmes liquidity position is very strong

E. This company can not cover its short term debts/liabilities

Key ratios for the Acme Company are as follows:

Ratio 2015 2014 2013 2012 2011 Ind. Ave.

Current Ratio 1.6 1.7 1.8 1.9 2.0 2.1

Quick ratio 1.6 1.7 1.8 1.9 2.0 2.1

Cash Ratio 1.2 1.3 1.4 1.5 1.7 1.6

TIE 4.6 4.8 4.8 4.9 5.0 4.4

Debt Ratio (in %) 52.2 50.1 48.8 44.4 43.4 43.3

Identify the true statement:

Select one:

A. The companys level of debt has decreased

B. The company is under-leveraged

C. Acme is now more reliant on debt than equity over the past two years

D. All of the above are true

E. All of the above are false