Which of the following is not true regarding the receivables turnover ratio?

1)	It is used to assess the liquidity of receivables.

2)	It has a popular variant called the average collection period.

3)	It measures the number of times, on average, receivables are collected during a period.

4)	It is calculated by dividing the average gross accounts receivable by the net credit sales.

Which of the following statements is not true?

1)	EBIT can be calculated by adding interest expense and income tax expense to net income.

2)	The times interest earned ratio gives an indication of a company's ability to meet interest payments as they come due.

3)	The higher a company's debt to total assets ratio, the lower the company's times interest earned ratio will be.

4)	The times interest earned ratio is calculated by dividing the sum of net income, interest expense, and income tax expense, by interest expense.

Analyzing the cash flow statement may help analysts determine the financial health of a company. Which of the following signs below is not an indicator of a financially healthy company?

1)	The company's operations are a major source (not a use) of cash.

2)	The company's operations are a major use (not a source) of cash.

3)	The company's financing activities are not dominated by borrowing.

4)	The company's investing activities include more purchases than sales of long-term assets.