How is the cash conversion cycle calculated?

Question 1 options:

1)	Average collection period + inventory turnover period + days payable outstanding period.
2)	Average collection period - inventory turnover period + days payable outstanding period.
3)	Average collection period - inventory turnover period - days payable outstanding period.
4)	Average collection period + inventory turnover period - days payable outstanding period.
5)	None of the above.

Question 2 (4 points)

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Ace Engineering Inc. has a net profit margin of 16.0 percent, an asset turnover ratio of 1.5, a debt to equity ratio of 0.40, and a total asset to equity ratio of 1.40. Expressed as a percent rounded to one decimal place, what is the firm's ROE?

Question 2 options:

1)	14.3%
2)	29.9%
3)	33.6%
4)	38.1%
5)	9.6%

Question 3 (4 points)

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Earnings per share is the ________.

Question 3 options:

1)	price per share divided by net income per share
2)	net income divided by the number of outstanding shares
3)	market value per share of common stock outstanding divided by the book value per share
4)	P/E ratio divided by the earnings growth rate times 100
5)	net profit margin times the equity multiplier

Question 4 (4 points)

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The main reason that financial managers evaluate a company's financial statements (i.e., the income statement, balance sheet and statement of cash flows) is to use ________ information to predict ________ performance.

Question 4 options:

1)	historical; future
2)	historical; present
3)	present; future
4)	present; historical
5)	There is no connection between a company's financial statements and performance.