You are the practice manager for a busy dental office. The drunken accountant stumbles in and tells you, "accounts receivable are up!" Assuming that this statement is true, possible explanations include 1. cash collections are down, all else being equal 2. cash collections are up, all else being equal 3. the practice has extended more credit to clients, all else being equal 4. Both A and C are correct 5. A, B and C are correct choices 5. Leverage can have some tax advantages over equity because interest expense is tax- deductible 1. True 2. False You are the CEO of a clothing manufacturer. The drunken accountant (same one?) stumbles into your office and declares, "the Inventory Turnover has gone up 10% since last quarter. Possible stand alone explanations include all of the following except 1. COGS has gone up 2. Average Inventory has gone down 3. The price of raw materials has gone up 4. Sales have decreased Your CFO, who is also drunk, stumbles into your office and tells you that the dividend yield on the company's stock has gone from 4% to 6%. Possible stand alone explanations for this include 1. The market price of company stock has gone up. 2. Company earnings have dropped. 3. More company stock has been issued. 4. The market price of the stock has dropped. ity: Good to go