3. The five C's of credit are Character, Capacity, Capital, Collateral and Conditions. To which of these C's is the times interest earned ratio

3.The five C’s of credit are Character, Capacity, Capital, Collateral and Conditions. To which of these C’s is the times interest earned ratio targeted?A) CharacterB) CapacityC) CapitalD) CollateralE) Conditions4.The five C’s of credit are Character, Capacity, Capital, Collateral and Conditions. To which of these C’s is the debt ratio targeted?A) CharacterB) CapacityC) CapitalD) CollateralE) Conditions5.In order to obtain an additional credit line Maytag pledged its inventory and accounts receivable. To which C would this be targeted?A) CharacterB) CapacityC) CapitalD) CollateralE) ConditionsUse the ratios below to answer questions 6 to 9:A – Times Interest Earned RatioB – Debt RatioC – Equity RatioD – Debt Tangible Net Worth Ratio6.Which ratio would increase if inventory were sold for more than cost?A) AB) BC) CD) D7.Which ratio would decrease if the corporation purchased a building financed by a mortgageA) AB) BC) CD) D8.Which ratio would not be affected by the sale of common stock?A) AB) BC) CD) D9.Which ratios would be affected by the declaration of a stock dividend?A) All of the above (A, B, C, D)B) AC) B, C, DD) None of the above10.A corporation utilizes operating leases to lessen the amount of debt shown on their balance sheets. Which ratio would best show the effect of these leases for the creditor?A) Times interest earned ratioB) Fixed charge coverage ratioC) Debt to equity ratioD) Current ratio