Select the correct answer 5 Marks 1. which of the following is not considered to be a profitability ratio? A) profit margin times interest earned C) return on equity D) return on assets (investment) Answer: 2. Which two ratios are used in the DuPont system to create return on assets? A) Return on assets and asset turnover Profit margin and asset turnover B) C) Return on total capital and the profit margin D) Inventory turnover and return on fixed assets Answer the operating efficiency of a firm's manage 3. Investors and financial analysts wanting to evaluate would probably look primarily at the firm's A) debt utilization ratios. B) liquidity ratios. C) asset utilization ratios. D) profitability ratios. 4. Total asset turnover indicates the firm's A) liquidity B) debt position. sales. C) ability to use its assets to generate profitability. D) Answer data for company Lancet: 5. Consider the following financial cash & marketable securities 100 total fixed assets 280 Annual sales 1200 net income 358 inventory 180 current liabilities 134 current ratio 3.2 45 days Average collection period Average common stock equity 500 on the basis of these data ROE