In 20X4, C Co

Multiple Choice

In 20X4, C Co. reported a times interest earned ratio of 12.33 times while P Co. reported a ratio of 11.07 times. Which of the following statements is false?

A) P Co. and C Co. have more than adequate ratios demonstrating their ability to cover interest charges with their earnings levels.
B) C Co's ratio is about 11.3% higher than P Co's ratio.
C) C Co. is more liquid than P. Co.
D) Lenders would be pleased with the ratios of both companies and be willing to lend them money for future expansion.