Comparisons of company data with industry averages can provide some insight into the company's relative position in the industry. 1. T F 2. Inventory turnover measures the number of times on the average the inventory was 3. A current ratio of 1.2 to 1 indicates that a company's current assets exceed its 4. Profitability ratios measure the ability of the enterprise to survive over a long 5. The three basic tools of analysis are horizontal analysis, vertical analysis, and ratio 6. In vertical analysis, the base amount in an income statement is usually net sales 7. The statement of cash flows is a required statement that must be prepared along sold during the period. current liabilities. T F period of time. SLS analysis. with an income statement, balance sheet, and retained earnings statement T F 8. The sale of land for cash would be classified as a pash inflow from an investing activity. The acquisition of a building by issuing bonds would peconsidered an investing and financing activity that did not affect cash. 9. 10. A loss on sale of equipment is added to net income in dtermining cash provided by operations under the indirect method. 11. Financing activities include the obtaining of cash from.issuing debt and repaying the amounts borrowed 12. Free cash flow equals cash provided by operations Tess capital expenditures and cash dividends. T F