Efficiency ratios: O include the quick-ratio, asset turnover ratio, and return on equity. o are used to measure how well the company uses its assets. o are used to measure how liquid the company is. o help answer questions of firm stability. QUESTION 6 Fotor Co.'s sales were quite volatile from 2010 to 2012. Did they appear to adjust their SG&A costs as a percent of sales over time to help improve profit margins? Assume 2010 through 2012 sales were $160B, $171B and $146B. Assume 2010 through 2012 SG&A expenses were $26.3B, $23.9B and $19.7B. o Yes No O Insufficient information QUESTION 7 If a firm has 1,000,000 shares outstanding, the current market price is $10 per share, total assets on the balance sheet are $5,000,000 and total liabilities are $1,000,000, what is the book value of equity (or just book value) for the firm? o $1,000,000 o $4,000,000 O $5,000,000 O $6,000,000 A sign that a firm is efficient is a: o high average collection period. high day's sales in inventories. low asset turnover. high inventory turnover