Name: ID: A 21. Which of the following statements is CORRECT? a. Borrowing by using short-term notes payable and then using the proceeds to retire long-term debt is an example of "window dressing." Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase additional inventories is another example of window dressing." b. Borrowing on a long-term basis and using the proceeds to retire short-term debt would improve the current ratio and thus could be considered to be an example of "window dressing." c. Offering discounts to customers who pay with cash rather than buy on credit and then using the funds that come in quicker to purchase fixed assets is an example of "window dressing." d. Using some of the firm's cash to reduce long-term debt is an example of "window dressing." e "Window dressing" is any action that does not improve a firm's fundamental long-run position and thus increases its intrinsic value. 22. Which of the following would indicate an IMPROVEMENT in a company's financial position, holding other things constant? a. The inventory and total assets tumover ratios both decline. b. The debt ratio increases c. The profit margin declines. d. The times-interest-earned ratio declines. e. The current and quick ratios both increase. 23. If a bank loan officer were considering a company's loan request, which of the following statements would you consider to be CORRECT? a. The lower the company's inventory turnover ratio, other things held constant, the lower the interest rate the bank would charge the firm. b. Other things held constant, the higher the days sales outstanding ratio, the lower te interest rate the bank would charge. c. Other things held constant, the lower the debt ratio, the lower the interest rate the bank would charge. d. The lower the company's TIE ratio, other things held constant, the lower the interest rate the bank would charge. e Other things held constant, the lower the current ratio, the lower the interest rate the bank would charge the firm. 74 A firm wants to strengthen its financial position. Which of the following actions would INCREASE its quick 22. Which of the following would indicate an IMPROVEMENT in a company's financial position, holding other things constant? a. The inventory and total assets turnover ratios both decline. b. The debt ratio increases. c. The profit margin declines. d. The times-interest-earned ratio declines. e. The current and quick ratios both increase. . .. laan marant which of the following statements would