12. Ptarmigan Travelers had sales of $420,000 in 2013 and $480,000 in 2014. The firm's current asset accounts remained constant. Given this information, which one of the following statements must be true? A. The total asset turnover rate increased. B. The days' sales in receivables increased. C. The inventory turnover rate increased. D The fixed asset turnover decreased. E. The collection period decreased. 13. A times-interest-earned ratio of 3.5 indicates that the firm: A. pays 3.5 times its earnings in interest expense. B. has interest expense equal to 3.5% of EBIT. C. has interest expense equal to 3.5% of net income. D. has EBIT equal to 3.5 times its interest expense. 14. Klamath Corporation has asset turnover of 3.5, a profit margin of 5.2%, and a current ratio of 0.5. What is Klamath Corporation's return on equity? A. 8.7% B. 9.1% C. 18.2% D. Insufficient information to find ROE