1. If the operating profit margin is trending downward (operating profit is decreasing), the manager should reduce A. expenses such as sales expenses, General and Administrative expenses. B. Interest Expense C. Taxes D. Other expenses 2. The earnings per share (EPS) ratio is most important to A. Analyst B. Shareholder C. All the above are concerned about the EPS D. Manager who receives bonuses based on EPS 3. The manager can increase the Net Profit Margin by decreasing all of the following except Assume all other items stay the same (ceteris paribus) when this value decreases. A. Taxes B. Sales C. COGS D. SGA expenses E Interest 4. Investors track the ROE to determine.. A. if the managers are using the assets wisely. B. how efficiently the firm uses the equity provided. C. if the omega-3 fatty acid is increasing. D. where the firm is in its life cycle 5. The increasing gross profit margin indicates A Costs are out of control and need to be lowered. B. The firm will need to increase revenue to stay in business. C. The costs are increasing faster than the revenue D. The firm is lowering it's cost per sale 6. The difference in the quick and current ratio is A current liabilities is adjusted for inventory. B. No answer text provided C. the quick ratio subtracts the inventory from current assets D. only the name. It measures the same items