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5) True and false. (9 Pts.) Indicate whether the following statements are True (T) or False (F) For each of the following, circle the T
5) True and false. (9 Pts.) Indicate whether the following statements are True (T) or False (F) For each of the following, circle the T or the F to indicate whether the statement is true or false. TF1 Net income stated as a percentage of sales is one means of evaluating a company's ability to TF2. From a bank's point of view, the lower the debt ratio of a company, the safer the bank's T F 3 The current ratio will always equal to or greater than the quick ratio control its expenses. position TF4The inventory turnover rate indicates the profitability of a company's products. T F 5. ROE - return on equity - is measured by dividing dividends by average total stockholders T F 6. The trend in ratios is usually more useful to a company than simply looking at a single year's TF7 Comparative financial statements show side-by-side financial data for two or more periods of T F 8 If total current assets are $90,000 at the end of Year 1, increase by $30,000 by the end of Year equity ratio time 2, and increase by $30,000 in Year 3, the percentage increase over the preceding year is more in Year 3 than in Year 2. T F 9. A company's liquidity refers to its ability to remain profitable
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