Please answer all parts of the question.

Ratios that measure how well a company controls expenses are __________.

• a.)profitability ratios
• b.)asset management ratios
• c.)liquidity ratios
• d.)leverage ratios

If net profit is $230,000 and equity is $1.2 million, then ROE is __________.

• a.)Cannot calculate without total assets data
• b.)80.83%
• c.)19.17%
• d.)Cannot calculate without total expenses data

Which of the following would explain a companys day sales outstanding ratio rising from 27.3 to 38?

• a.)The company's accounts receivable has increased while total sales has remained constant.
• b.)The company's accounts receivable has decreased while total sales has increased.
• c.)The company's accounts receivable has decreased while total sales has remained constant.
• d.)The company's accounts receivable has remained constant while total sales has increased.

What does it mean if a company has a current ratio of 3.25?

• a.)The company's current liabilities exceed its current assets.
• b.)The company has an excess of inventory that cannot be easily converted into cash.
• c.)The company's ability to pay off its short term debt falls below what industry generally considers adequate.
• d.)The company's ability to pay off its short term debt exceeds what is generally considered adequate.

If Company A has a higher debt ratio than Company B, then Company A is likely to have __________ than Company B.

• a.)more flexibility when it comes to borrowing
• b.)less ability to pay off its long-term debt
• c.)more total liabilities
• d.)a lower level of financial risk

Consider the P/E ratios of the following companies:

• Company A: 8.5
• Company B: 12.2
• Company C: 10.4
• Company D: 9.7

Which company has the lowest relative value among investors?

• a.)Company B
• b.)Company C
• c.)Company A
• d.)Company D

Asset turnover is calculated by __________.

• a.)
• b.)
• c.)
• d.)

Comparing a company's performance over time can be done through __________.

• a.)benchmarking
• b.)trend analysis
• c.)forecasting
• d.)historical analysis