Which of the following statements is false? a. market capitalization is the number of shares outstanding times the market price. b. a company with a .05x interest coverage ratio would be at less risk of missing payments on interest than a company with a 4.9x interest coverage ratio. c. the dupont identity is an expression that breaks the return on equity into three parts that measure operating efficiency, asset use efficiency, and financial leverage. d. sometimes book equity can become negative, and when that happens, positive roe is not a good sign.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?