14. To calculate the average collection period you need the A. the amount of inventory B. sales per day C. Income per day D. the payables per day 15. Inventory turnover should be decreasing if the firm A. is more liquid B. is buying fewer supplies C. sales are slowing D. is growing at a faster pace 16. The Market/Book ratio is A. The market price of a firm compared to the price of the book about the founder. B. the most important ratio C. a comparison of the market price to the accounting value of the firm D. the price per share of the firm compared to the accounting cost of booking income 17. The higher the P/E ratio A. the more you pay for the firm's earnings. B. the more the industry is growing C. the more investors buy it D. the cheaper the stock is to purchase 18. Return on Assets (ROA) reflects the percentage of profit A. the firm should make based on its investments B. the firm earns on its short-term assets C. the firm earns on its labilites, D. a firm earns on its resources (assets). 19. To calculate ROE you first calculate shareholder equity. Equity if found by A. adding the firm's assets and liabilities B. multipy, the dividends by the assets C. subtracting a firm's debt from its assets D. looking up the market price of the firm online