QUESTION 17

1. If a company greatly increases its financial risk, how would it probably affect key ratios in a profitable year?

   	A.	Debt to Assets, Return on Assets, & Return on Equity would increase.
   	B.	Debt to Assets and Return on Equity would increase.
   	C.	Debt to Assets and Return on Assets would increase.
   	D.	Debt to Assets would increase and Return on Equity would increase faster than Return on Assets.

QUESTION 18

1. How would the inventory turnover ratio and average days in inventory of a low end retailer be different from a high end retailer?

   	A.	Inventory turnover higher, Average days higher
   	B.	Inventory turnover higher, Average days lower
   	C.	Inventory turnover lower, Average days lower
   	D.	Inventory turnover lower, Average days higher