32. Which of the following statements is correct? A. If a firm has a very high fixed asset turnover, it means that the firm may be nearing its maximum production capacity. B. An extremely low average collection period will maximize net income. C. In general, a firm should strive for a high average payment period because it wants to pay for its purchases as quickly as possible. D. All of these statements are correct. 33. Which ratio assesses how efficiently a firm uses its fixed assets? A. Capital intensity ratio B. Current ratio C. Average collection period D. Fixed asset turnover in ended the year with an average collection period of 50 days. The firm's credit sales were $il million. What is the firm's year-end balance in accounts receivable? A. $1.27 million B. $0.85 million C. $1.51 million D. $2.05 million 35. Which of the following statements is correct? A. The use of debt in the capital structure results in tax benefits to the firm. B. Debt is referred to as "financial leverage" because it magnifies returns to shareholders. C. Debt management ratios evaluate whether a firm is financing its assets with a reasonable amount of debt versus equity financing. D. All of these statements are correct