1. Which of the following is NOT a way a company can achieve a low-cost position?

customer service

2. Time-series analysis helps answer all of the following questions EXCEPT

What is the amount of assets or capital required to generate a particular level of earnings?

3. The Johnson Company has a current ratio of 1.45. The company has just sold $600,000 worth of merchandise on credit. What will the current ratio be after the sales on credit?

greater than 1.45

4. One common problem with the current ratio is that it is susceptible to "window dressing." If prior to the end of the accounting period Saxon Company has a current ratio of 1.5 and management wishes to boost its current ratio it may decide to:

pay off accounts payable prior to year-end.

5. Doran Corp. has a current ratio of 6. Under which of the following scenarios might this indicate a problem?

inventories are increasing and the industry in which Doran Corp. operates is experiencing a recession

6. All of the following are common industry risks faced by companies except:

litigation

7. Which of the following can companies use as collateral for a loan?

Property, plant, and equipment