1. As the inventory turnover increases, the average sales period decreases.
True
False
2. A high price-earnings ratio means that investors are willing to pay a premium for the company's stock.
True
False
3. All other things the same, when a customer purchases an item for cash, the accounts receivable turnover ratio increases.
True
False
4. Issuing common stock will decrease a company's financial leverage.
True
False