What do you guyz think of my T/F answers ?

Sarah20 · #1 Mar 3, 2008, 11:19 AM

Hey guyz, i have solved the following T/F question, my answers are as follows, but i would like to confirm it with somebody else.

1. Days' sales in recievables may NOT be abnormally high at the end of the year if the sales voulme expanded materially in the year. (TRUE)

2. If the company closes the year when the activities are at a peak, the number of days' sales in inventory would tend to be overstated and the liquidity would be overstated. (FALSE).

3. Cash flow per share is usually higher than earning per share. (FALSE)

4. Cash flow per share can be viewed as a substitute for earnings per share in terms of profitability. (FALSE).

5. Significant weight is rarely given to the cash ratio unless the firm is in financial trouble. (FALSE)



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