QUESTION 5

A common measure of liquidity is

	1.	dividends per share of common stock.
	2.	profit margin.
	3.	ratio of net sales to assets.
	4.	receivable turnover.

QUESTION 6

Based on the following data for the current year, what is the number of days' sales in accounts receivable?

Net sales on account during year			$584,000
Cost of merchandise sold during year			300,000
Accounts receivable, beginning of year			45,000
Accounts receivable, end of year			35,000
Inventory, beginning of year			90,000
Inventory, end of year			110,000
	1.	25
	2.	2.5
	3.	14.6
	4.	7.3

QUESTION 7

The percent of fixed assets to total assets is an example of

	1.	horizontal analysis
	2.	profitability analysis
	3.	vertical analysis
	4.	solvency analysis

QUESTION 8

The best way to study the relationship of the components within a financial statement is to prepare

	1.	profitability analysis.
	2.	common size statements.
	3.	a trend analysis.
	4.	ratio analysis.