16. Which one of the fol hich one of the following statements incorrect? A If the total debt ratio is greater than 50, then the det ty ratio must be less than 10 B. Long-term creditors would prefer the time interest earneration be 1.4 rather than 1.5. C. The debt-equity ratio can be computed as the equity multiplier minus 1. D. An equity multiplier of 12 means a firm has $1.20 in sales for every $1 in equity E. An increase in the depreciation expense will affect the cash co- erage ratio. 17. If a firm has a debt-equity ratio of 4.0, then its total debt ratio must be which one of the following? A. 0.2 De bot -og ratio 4.0 B. 0.8 C. 1.0 D. 1.6 E. 2.0 18. Beach Wear has current liabilities of $490,000, a quick ratio of 1.2, in- ventory turnover of 1.5, and a current ratio of 2.9. What is the cost of goods sold? 112= 1421000-X A. $999, 600 QR=1,2 & 490,000 490,000 B. $1,060,000 558,000= 142006- C. $1,249,500 TT=1.5= inu Y=833.000 D. $1,400,000 E. $1,560,000 19. Russell's Deli has cash of $500, accounts receivable of $100, accounts payable of $210, and inventory of $409. What is the value of the quick 532004 CR=29=CA 1,421,00 CR=2ut 1 EA= 1,724000 a 490,000 V ob 200 ratio? CA-I U 600 - A. 0.31 Cash 500 892 500+106) - 404 AK 5100 AP=210 - 210 inu 409 191125 - 4