Which of the following statements relating to financial statement analysis is NOT true? O 1. The common size Balance Sheet expresses items as a percentage of sales in order to measure the efficiency with which each item is being used (i.e., its turnover ratio) O 2. If the firm is profitable and its RNOA exceeds its net borrowing costs, then ROCE will be greater than RNOA O 3. RNOA is an unlevered measure of profitability 4. An increase in the inventory ratio indicates that the firm is generating more sales per dollar invested in inventory than before Which of the following statements relating to financial statement analysis is NOT true? 1. Typically, the measure of leverage based on the reported accounting figures (debt-to-equity) is higher than the comparable figure based on the reformulated financial statements (FLEV) 2. Forecasting a change in the turnover ratio for an individual asset account in the Balance Sheet will typically have implications for other figures in the forecasted financial statements 3. One of the reasons that the return to the firm calculated based on reported accounting figures (ROA) will typically be lower than the comparable measure based on the reformulated financial statements (RNOA) is because ROA includes financial assets 4. If a firm has net financial assets, its RNOA will typically be lower than its ROCE Which of the following statements relating to financial statement analysis is NOT true? O 1. Typically, the return to the firm calculated based on reported accounting figures (ROA) will be lower than the comparable measure based on the reformulated financial statements (RNOA) O 2. If a firm's net borrowing cost (NBC) is higher than the return on its net operating assets (NOA), the use of debt financing will enhance the return to the common shareholder O 3. One of the reasons that the measure of leverage based on the reported accounting figures (debt-to-equity) will typically be higher than the comparable figure based on the reformulated financial statements (FLEV) is because the debt-to-equity ratio ignores financial assets 4. One of the critical aspects of undertaking sensitivity analysis is to ensure that the proposed changes to the financial ratios are feasible