11. What liquidity ratios show? a. It gives management an indication of what investors think of the company past performance and future prospects b. It reveals whether the firm's condition has been improving or deteriorating over time c. Shows the relationship of a firm's current assets to its current liabilities and thus its ability to meet maturing debts d. It is designed to show how the profit margin on sales, the assets tumover ratio, and the use of dept interact to determine the rate of return on equity 12. What are market value ratios are about? a. Shows the relationship of a firm's current assets to its current liabilities and thus its ability to meet maturing debts b. It is designed to show how the profit margin on sales, the assets turnover ratio, and the use of dept interact to determine the rate of return on equity c. It gives management an indication of what investors think of the company past performance and future prospects d. It reveals whether the firm's condition has been improving or deteriorating over time 13. What is operating capital, and why is it important? a. Amount of cash flow remaining after a company makes the asset investments necessary to support operations b. Sum of net operating working capital and operating long-term assets. c. Net operating profit after taxes d. Current assets that are used to support operations, such as cash, Inventory, and accounts receivable