4. Below are the functions of financial statement analysis except: A. Evaluating trends in the firm's financial position over time B. helping management identify deficiencies and then take no actions to improve performance C. Comparing the firm's performance with that of other firms in the same industry 5. A gross profit margin percentage is computed A. sales over gross profit times 100% B. gross profit over net profit after tax times 100% C. gross profit over net sales times 100% 6. The return on investment from the shareholders' point of view is A. net profit over assets times 100% B. net profit over owners' equity times 100% C. assets over owners' equity times 100% 7. What does the accounts receivable (A/R) turnover ratio tell us? A. How frequent A/R is received B. How many times average A/R is collected C. A/R balance is at the end of a period 8. Which one of the financial ratios below shows how fast the inventory can be converted into sales? A. Inventory Turnover Ratiol B. Current Ratio C. Operating Margin 9. Below are the limitations of financial ratio except: A. More useful for narrowly focused firms than for multidivisional ones B. Benchmarking is better than industry average C. Inflation has not distorted many firms' balance sheets 10. Time value of money indicates that A. A unit of money obtained today is worth more than a unit of money obtained in future B. A unit of money obtained today is worth less than a unit of money obtained in future C. There is no difference in the value of money obtained today and tomorrow