For which of the following financial measures is it safe to assume that the reported (measured) amount represents a current period cash flow? (As always, read all options before answering.)

		Sales
		None of the other alternative answers are safe to assume that the reported (measured) amount represents a current period cash flow
		Cost of good sold
		Earnings per share
		Depreciation

A firm's short-term solvency, i.e. ability to pay its current liabilities (aka liquidity), is measured by which of the following ratio(s)? (Read all options before answering.)

		Quick ratio
		Inventory turnover ratio
		Current ratio
		Both the inventory turnover ratio and the return on assets ratio
		Both the current ratio and the quick ratio
		Return on assets ratio

The extended Du Pont equation, a.k.a. the 3 component decomposition of ROE equation, (i.e. ROE = (profit margin)x(total asset turnover)x(equity multiplier)) is used to:

		compute the firm s ROA, as the equation states.
		decompose the firm s ROE into sub-components, for a better understanding of the firm s financial health.
		determine if the firm is liquid
		compute the firm s ROE, as the equation states.

A speedup in a firm's __________ should __________ a firm's financing needs; whereas, a slowdown in a firm's __________ should __________ financing needs for a firm. (Hint: Systematically go through each alternative a-e individually (sequentially) & decide if it is correct, then select the correct response. Also, note that everything is from the firm s perspective; thus collections are received by the firm and payments are paid by the firm.)

		collections; increase; collections; decrease
		collections; increase; payments; increase
		payments; increase; collections; decrease
		payments; increase; collections; increase
		collections; decrease; payments; increase