debt service coverage

debt service coverage
cash flow statement?

Which of the following generally indicates a positive change?
A. Earnings per share decreases.
B. The debt service coverage ratio decreases.
C. The acid-test ratio decreases.
D. The number of days’ sales in inventory decreases.

D) Less money tied up in stocks should be a positive in terms of an increase in positive cash flow.

The others would normally suggest a decrease in cash flow.


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