Question 18 2 Points For a given level of profitability as measured by profit margin, the finns return on equity will decrease as its current ratio increases increase as its debt-to-assets ratio increases. decrease as its times interest-earned ratio decreases increase as its debt-to-assets ratio decreases. Question 19 2 Points A firm only has current assets and fixed assets. Its current assets are $100.000 and total assets are $300,000. The firm's sales are $900,000. The firm's fixed asset turnover is 5.0 B 12.0x 2.4 45x Question 20 2 Points Question 20 2 Points The key initial element in developing all pro forma statements is a sales forecast. an income statement. a collections schedule a cash budget Question 21 2 Points A rapid rate of growth in sales may require increased borrowing by the firm to support the sales increase. the firm to be more lenient with credit customers. sales forecasts to be made less frequently. higher dividend payments to shareholders 2 Point Question 22