Which of the following statements is CORRECT? A decline in a firm's inventory turnover ratio suggests that it is improving both its inventory management and its liquidity position, i.e., that it is becoming more liquid. In general, it's better to have a low inventory turnover ratio than a high one, as a low one indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock. If a firm's fixed assets tumover ratio is significantly lower than its industry average, this could indicate that it uses its fixed assets very efficiently or is operating at over capacity and should probably add fixed assets. The more conservative a firm's management is, the higher its total debt to total capital ratio is likely to be. The days sales outstanding ratio tells us how long it takes, on average, to collect after a sale is made. The DSO can be compared with the firm's credit terms to get an idea of whether customers are paying on time. Your bank offers to lend you $114,400 at an 8.5% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2 ? $7,254.82$8,161.67$8,615.10$9,068.53$10,428.81 Suppose you inherited $175,000 and invested it at 8.25% per year. How much could you withdraw at the end of each of the next 20 years? $14,888.75$18,157.02$18,883.30$15,070.32$21,606.85