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1.

The higher ___________________, the more efficiently the firm is managing inventory.

Group of answer choices

Investory turnover

Days' sales in inventory

2.

An increase in current liabilities will have which one of the following effects, all else held constant? Assume all ratios have positive values.

Group of answer choices

Decrease in the quick ratio

Increase in the current ratio

Increase in the net working capital to total assets ratio

3.

Based on the following standardized balance sheets, the total % increase in inventory and the net % increase (eliminating the effects of the overall growth in total assets) are:

			Balance Sheet ($)			Balance Sheet			Balance Sheet
						Common-Size			Common-		Combined Common-
									Base Year		Size and Base Year
			2017	2018		2017	2018		2018		2018
Current Assets
Cash			84	146		2.49	3.96		1.74		1.59
A/C receivables			165	188		4.89	5.10		1.14		1.04
Inventory			393	470		11.65	12.76
Total current assets			642	734		19.03	21.82		1.25		1.15
Fixed Assets
Net plant and equip			2,731	2,880		80.97	78.18		1.05		0.97
Total Assets			3,373	3,614		100.0	100.0		1.09		1.00

Group of answer choices

25%; 18%

20%; 9.5%

20%; 13%

25%; 14%

15%; 5.4%

15%; 8.1%

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