Please answer 1- 5.

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1 USA Co. has an acid test ratio of 1.5 to 1.0, Which of the following will cause this ratio to deteriorate? O sale of inventory on account O borrowing short-term loan from a bank sale of equipment at a loss O Payment of cash dividends previously declared 2 It is the policy of E-Prompt Corporation that the Current Ratio cannot fall below 1.5 to 1.0. Its Current Liabilities are Php 400,000 and the present Current Ratio is 2 to 1. How much is the maximum level of new short-term loans it can secure without violating the policy? O Php 400,000 O Php 800,000 O Php 300,000 O Php 266,667 3 Which of the following ratios is most relevant to evaluating solvency? O debt ratio O dividends yield O return on assets O days' purchase in accounts payable4 Selected data from the year-end financial statements of World Cup Corporation are presented below. The difference between average and ending inventories is immaterial. Current Ratio = 2.0 Quick Ratio = 1.5 Current Liabilities = Php 600,000 Inventory Turnover (based on Cost of Sales) = 8 times Gross Profit Margin = 40% World's Net Sales for the year were _ O Php 4.0 million O Php 1.2 million O Php 6.0 million O Php 2.4 million 5 A major problem in comparing profitability measures among companies is the O lack of general agreement over which profitability O differences in the dividend policies of the companies O differences in the size of the concepts O differences in the accounting methods used by the companies