1. An organizational yearly cash flow to creditors has decreased whereas the newly raised equity has increased. Suggest what would happen with the organization's CFFA. (2)

2. (0.5 +0.5 + 0.5+0.5=2) a) Can ROE be less than 1? b) What will happen to ROE if Sales drop? c) How are Financial Statements used for internal and external purposes? d) Describe how cash flow to firms could be beneficial? Additional Question a) Define the Gross Margin Ratio, ROE and ROA when the companies have the highest efficiency in terms of production. Show the changes in comparison to the present status of inventories and raw materials. (2)