There are no universally accepted definitions of financial ratios, but five of the following ratios are clearly incorrect. Substitute the correct definitions.
a. Debt-equity ratio = (long-term debt + value of leases)/(long-term debt + value of leases + equity)
b. Return on equity = (EBIT_tax)/average equity
c. Profit margin = net income/sales
d. Days in inventory = sales/(inventory/365)
e. Current ratio = current liabilities/current assets
f. Sales-to-net-working-capital = average sales/average net working capital
g. Quick ratio = (current assets - inventories)/current liabilities
h. Times-interest-earned = interest earned X long-term debt