6. Which of the following changes is the least favorable?

a. An increase in inventory turnover

b. A decrease in operating expenses

c. An increase in the price-earnings ratio

d. A decrease in the asset turnover

7. McDonald Companys net income in 2017 was $200,000. The company paid preferred dividends of $32,000 and common stock dividends of $10,000. It average common stockholders equity was $850,000 during 2017. How much is the companys return on common stockholders equity for 2017?

a. 19.8%

b. 23.5%

c. 18.6%

d. 4.3%

8. Which of the following is not a profitability ratio?

a. Inventory turnover

b. Gross margin percentage

c. Earnings per share

d. Return on total assets