True/False:

1.The transactions motive for inventory management tries to take advantage of unforeseen opportunities.

2.The current ratio is best seen as a measure of solvency.

3.Net profit provides an accurate and reliable estimate of the cash a firm has at its disposal.

4.An increase in collection float will lead to an increase in the cash conversion period, all else being equal.

5.The cash conversion period measures how long it takes to convert $1 of disbursements into $1 of cash receipts.