1 point Which of the following is NOT an asset utilization ratio? * Inventory turnover O Return on assets Fixed asset turnover Average collection period 1 point Which of the following is NOT considered to be a profitability ratio? Times interest earned O Profit margin Return on equity O Return on assets (investment) Which two ratios are used in the DuPont system to create return 1 point on assets? * O Inventory turnover and return on fixed assets O Return on total capital and the profit margin O Return on assets and asset turnover O Profit margin and asset turnover 1 point For a given level of profitability as measured by profit margin, the company's return on equity will * O Increase as its debt-to assets ratio increases. O Decrease as its times-interest-earned ratio decreases. O Decrease as its current ratio increases. O Increase as its debt-to-assets ratio decreases. 1 point Asset utilization ratios * O Relate balance sheet assets to income statement sales. 0 Measure how much cash is available for reinvestment into current assets 0 Measures the company's ability to generate a profit on sales. O Are most important to stockholders. A decreasing average collection period could be associated with 1 point (select one best answer) * Increasing cash sales None of the choices. Decreasing sales Increasing account receivable