1- bingo inc. is planning to reduce the number of days it takes

the company to collect credit sales from 45 days to 30 days. Bingo believes that this

policy change will have no effect on either sales or costs. Any asset changes resulting

from this new policy will be offset by a corresponding and equal change in notes

payable (i.e., short term bank loans). All else constant, this new collection policy

should be expected to:

A) Decrease the firm's quick ratio (assume that prior to this change, the company's

quick ratio = 0.8).

B) Decrease the firm's average collection period (assume that prior to this change,

the company's average collection period = 30 days).

C) Decrease the firm's current ratio (assume that prior to this change, the

company's current ratio = 1.3).

D) Decrease the firm's debt ratio (assume that prior to this change, the company's

debt ratio = 40%).

E) Decrease the firm's return on equity (assume that prior to this change, the

company's ROE = 25%).

F) Increase the firm's inventory turnover ratio (assume that prior to this change, the

inventory turnover ratio = 6.2).