Jake is a stockholder of several companies and he studies financial statements of these companies regularly. Why does he desire a healthy cash flow? A. it assures him that the company buys assets often B. it assures him that the company is profitable C. it assures him that the company can survive seasonal variation in sales D. it reflects to him that the company has a good asset turnover ratio

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%