4.A firm has inventory of $464,234, accounts receivable of $238,400, current assets of 873,425 and current liabilities of $689,112. During the year, total sales are $1,585,160, of which $946,260 are cash sales. What is the average collection period for the firm?

A.more than 149 days

B.more than 142 days but less than 149 days

C.more than 135 days but less than 142 days

D.more than 128 days but less than 135 days

E.less than 128 days

5.Which of the following statements is (are) correct?(x)In general, a higherinventory turnover is desired because the firm will minimize the costs of holding inventory if the turnover is high instead of low.(y)A firm may strive for a high average payment period because it wants to pay for its purchases as slowly as possible to maintain a higher cash balance.(z)If the fixed asset turnover ratio is extremely low then the firms fixed assets are idle too much and the firm has much less production capacity than the production dictated by customer orders

.A.(x), (y) and (z)

B.(x) and (y) only

C.(x) and (z) only

D.(y) and (z) only

E.(y) only6.

A firm's year-end price on its common stock is $73.25. The firm has a profit margin of 9.75%, total assets of $45 million, a total asset turnover ratio of 1.54, no preferred stock, and 1.24million shares of common stock outstanding. Calculate the PE ratio for the firm.

A.more than 13.42 but less than 13.80

B.more than 13.04but less than 13.42

C.more than 12.66but less than 13.04

D.more than 12.28but less than 12.66

E.less than 12.28

7.Softer Lights, Inc. has provided the following information for its most recent year of operation. Net income was $316,500, fixed assets are $876,400, current assets equal $239,450, current liabilities equal $198,360, EBIT was $434,000, and equity is $578,600. What is the debt ratio for Softer Lights?

A.more than 47.25%

B.more than 42.50% but less than 47.25%

C.more than 37.75% but less than 42.50%

D.more than 31.00% but less than 37.75%

E.less than 31.00%