Please solve the MCQ's

1) Use the ratios for 2017 and 2016 ratios given above to compare and answer the following question.

Which year did Comfy Home have the best gross profit margin?

a) 2016

b)2017

2) Use the ratios for 2017 and 2016 ratios given above to compare and answer the following question.

Which year did Comfy Home have the lowest days inventory?

a) 2016

b) 2017

3) Use the ratios for 2017 and 2016 ratios given above to compare and answer the following question.

Which year did Comfy Home have the highest leverage?

a) 2016

b) 2017

4) Use the ratios for 2017 and 2016 ratios given above to compare and answer the following question.

Which year did Comfy Home have the most advantageous cash conversion cycle?

a) 2016

b) 2017

5) Use the ratios for 2017 and 2016 ratios given above to compare and answer the following question.

Which year did Comfy Home have the highest accounts receivable turnover?

a) 2016

b) 2017

6) Use the ratios for 2017 and 2016 ratios given above to compare and answer the following question.

Which year did Comfy Home have the most liquidity?

a) 2016

b) 2017

7) Which of the following actions could Comfy Home's owners use to reduce its leverage?

Select all that apply.

a) Raise additional equity capital.

b) Randolf Singh sells all his shares in Comfy Home to Tenisa Singh.

c) Sell PP&E at book value and use the cash to pay off creditors.

d) Pay off long-term debt.

e) Increase net profits (and thereby retained earnings).

f) Use short-term debt to pay off long-term loans

2016 2017 Gross Profit Margin Current Ratio Days Inventory Avg. Collection Period Days Purchase Outstanding Leverage Ratio Debt to Equity Asset Turnover Cash Conversion Cycle Interest Coverage Ratio 36.21% 3.44 110.46 40.56 35.17 2.54 1.55 1.25 115.85 9.12 40.05% 2.76 127.25 51.39 53.72 1.83 0.83 1.43 124.93 8.33