QUESTION 7 Which of the following statements is true? O A. Profit margin is calculated by dividing total assets by sales. OB. Return on Equity rises if equity increases and net income remain constant. OC. A 10% increase in cash will lead to a greater Cash Ratio O D. The current ratio increases if the current liabilities increase QUESTION 8 Which of the following statements is false? A. A positive cash conversion cycle means the company is paying its payables before receiving its receivables. O B. A negative cash conversion cycle means the company is collecting its receivable before paying its payables O C. The cash conversion cycle is the length of time required for the company to recieve its inventory and then receive cash from the sales of its inventory O D. All of the above statements are true