1.5 28. A company has a current ratio of 1.5. Cash is used to pay down accounts payable, which is the firm's only current liability. Inventory and Accounts Receivable balances are positive and remain unchanged. What happens to the current ratio? A: Decreases B: Increases C: Stays the same 29. A company publishes results for the years ended 2012 and 2013. Which of the following is true? 2012 2013 Net profit margin 5% 8% Asset turnover 2 1.5 Leverage multiplier 1.8 A: ROE rose in 2013 due to increased net profit margins and leverage. B: ROE fell in 2013 due to increased net profit margins and leverage. C: ROE rose in 2013 due to decreased asset turnover. 30. Which ratio would a company most likely as a metric to track the efficiency of its operations and activities? a. Current Ratio b. Payables Turnover c. Gross Margin 31. Game Theory Bonus Curve: You must select your desired bonus for the exam. You may choose 2 points or 6 points. If more than 10% of the class selects 6 points, no bonus points will be awarded. Contemplate deeply a. 2 points b. 6 points