uestion 17 2 points Save Answer When considering the AFN equ

uestion 17 2 points Save Answer When considering the AFN equation, the two sources of funds a firn has to support a sales increase are: Spontaneous increases in Accounts Receivables and Accrua\'s and Addltions to Retained Earnings True False

Solution

Q17 FALSE Explanation: Two sources of funds is incresae in accounts payable and addition to retained earnings Accounts Receivable is use of funds. Q29 GM trades at a higher P/E ratio Explanation: If two firms has same EPS but one is trading at higher price than his PE ratio will be higher Q27 For each $1 of fixed assets, the firm generated of $3.50 in sales. Explanation Fixed assets turnover = Sales/Fixed assets =3.5 Q24 it increases Explanation: funding current assets with non current liabilities always increases working capital