1. Catco Corp's total common equity at the end of last year was $300,000 and its net income after taxes was $59,010. What was its ROE?
A. 18.33%
B. 18.67%
C. 19.00%
D. 19.33%
E. 19.67%
2. The ________ ratio may indicate poor collections procedures or a lax credit policy.
A. average payment period
B. inventory turnover
C. average collection period
D. quick
3. ABC Corp. extends credit terms of 45 days to its customers. Its credit collection would likely be considered poor if its average collection period was
A. 30 days.
B. 36 days.
C. 47 days.
D. 57 days.