54. If net sales is growing at a greater rate than cost of goods sold, which of the following will always be true? a. The gross margin ratio will decrease. b. The gross margin ratio will increase. c. Net income will increase. d. Net income will decrease. e. None of the answer choices is correct. 55. Which of the following types of measures focuses primarily on income statement information? a. long-term solvency measures. b. short-term liquidity measures. c. market valuation measures. d. profitability measures. e. None of the answer choices is correct. 56. All of the following measures evaluate profitability except a. profit margin ratio. b. return on assets. c. market capitalization. d. gross margin ratio. e. None of the answer choices is correct. 39. D COS 2017? 57. Which of the following is the best explanation of a company's inventory turnover of 12.0 for the year Acc Merc Using a. the company averages about 12 months' sales in inventory. b. The company averages about 12 days' sales in inventory. c. The company averages about one month's sales in inventory. d. The company averages about 12 days from the time an item is sold until the cash is collected e. None of the answer choices is correct. a. $1 b. (Si Non 58. Which of the following types of companies would have the highest inventory turnover ratios? a. A company that sells grand pianos. b. An automobile dealer. c. A custom home builder. d. A grocery store. c. None of the answer choices is correct