1. Wangley Company has an inventory turnover of 8. Which statement is true?

a. Wangley has about 2 months of sales in its inventory

b. Wangley takes about 46 days from the time an item is sold until Wangley collects the cash

c. Wangley takes about one month from the time an item is purchased until the cash is collected from the sale of the inventory

d. Wangley sells it inventory 8 times faster than other companies

3. If management is manipulating earnings to achieve performance targets, what outcome may result?

a. Net income may exceed cash from operations.

b. Cash from investing activities will exceed cash from financing activities.

c. Cash will experience a net decrease.

d. Total assets will increase.

5. Where can you find insight of why sales has increased by 32% from a prior period?

a. Common size financial statements

b. Managements discussion and analysis

c. The balance sheet

d. Horizontal analysis