Please answer with valid reason and explanation

28. Which of the following statements is NOT correct? A) Many companies have cyclical operating cash needs due to the seasonality of sales, which requires companies to build up inventory prior to cash being collected from customers. B) A letter of credit Provides a guarantee of payment from the buyer, reducing the credit risk to the seller C) Covenants represent terms and conditions set forth in a lending agreement to reduce the probability of nonpayment and help lenders detect deteriorating loan quality D) When considering the results of an Altman Z-Score analysis, a score of 2.50 suggests the company is healthy and there is a low bankruptcy potential in the short-term. E) Accounts receivables, net, reported in the current asset section of a balance sheet represents the total amount to be expected to collect from customers within the next year. 29. The Meryl Corporation's common stock is currently selling at $100 per share, which represents a P/E ratio of 10. If the firm has 100 shares of common stock outstanding, a return on equity (ROE) of 11%, and a debt ratio of 80%, what is its return on total assets (ROA)