1) Listed below are factors affecting the gross profit margin. Think about whether each of these factors will cause gross profit percentage to rise or to fall?

a.Reduced demand in a depressed economy

b.Strikes

c.Increased competition

d.Reduced production cost

e.Higher discounts from suppliers

f.Raising selling prices

g.Not passing on rising costs to customers

2) The current ratio tells users of financial statements how many s of current assets there are per of current liabilities.

a.True

b.False

3) In general, a creditor would consider a decrease in which of the following ratios to be positive news?

a.Interest coverage

b.Debt to Capital

c.Return on assets