7.According to the textbook, which of the following statements is (are) correct?

A.In general, a very low inventory turnover is desired because the firm will minimize the costs of holding inventory if the turnover is low instead of high

.B.In general, a firm should strive for a high average payment periodbecause it wants to pay for its purchases as quickly as possible

.C.A high average payment period and a low accounts payable turnover is usually a sign of good management

D.All of these statements are correct

.E.A and B, only

8.You have the following information on Ben's Bridle Shop: total liabilities and equity = $65 million, current liabilities = $10 million, accounts receivable = $20 million, inventory = $15 million and quick ratio = 3 times. Using this information, what is the balance for fixed assets on Ben's balance sheet?

A.$20 million

B.$40 million

C.$45 million

D.$65 million

E.$135 million

9.A firm reported working capital of $4.7million and fixed assets of $20 million. Its fixed asset turnover was 1.2 times. What was the firm's sales to working capital ratio?

A.2.28times

B.4.36 times

C.5.11times

D.6.05times

E.8.69times

10.According to the textbook, which of the following statements is (are) correct?

(x)A firm with total assets of $10 million and sales of $6.25 million has a capital intensity ratio of 6.25 times.

(y)In general, the lower the capital intensity ratio andthe higher the total asset turnover the more efficient the overall asset management of the firm

(z)A railroad or an automobile manufacturer is more likely to have a high capital intensity ratio than an accounting or law firm.

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

B.(x) and (y) only

C.(x) and (z) only

D.(y) and (z) only

E.(z) only

11.Use the following information to calculate current assets: Sales = $100 million, capital intensity ratio = 0.45times, debt ratio = 30%, and fixed asset turnover ratio = 5 times.

A.$50million

B.$30million

C.$25 million

D.$15 million

E.$10 million

12.SuperSports, Inc. reported a debt-to-equity ratio of 0.65 times at the end of 2011. If the firm's current liabilities equal $1.5 million and total debt equals $5 million, how much equity does SuperSports show on its balance sheet?

A.$10.0million

B.$3.25 million

C.$5.00million

D.$5.38million

E.$7.69million