Answer the following true or false questions using the dropdown menus provided.

• In Year 1, Mandi's Milk has a Net Income of $200,000 and a Total Assets of $500,000. In Year 0, Mandi's Milk had a Net Income of $150,000 and a Total Assets of $400,000. True or false: Mandi's Milk's Return on Assets is 0.40. for Year 1 [ Select ] ["True", "False"]
• True or false: The recording of an impairment loss will reduce working capital. [ Select ] ["True", "False"]
• Umbridge's Umbrellas has been forced to reduce the value of its see-through umbrellas due to their declining popularity. True or false: As the result of applying lower of cost or market, gross profit will decrease. [ Select ] ["True", "False"]
• Shreya's Smoothies is debating whether to use perpetual FIFO or LIFO for her produce inventory, and is considering how it may impact her financial statement ratios. Assume Shreya's Smoothies is experiencing an inflationary period and would not liquidate any LIFO layers. True or false: Shreya would have a higher gross profit percentage using perpetual FIFO than perpetual LIFO. [ Select ] ["True", "False"]
• True or false: A company looking to decrease its Average Days in Inventory could do so by holding less inventory in its warehouse, therefore decreasing the dollar value of of inventory on the balance sheet. [ Select ] ["True", "False"]