125.Indicate whether each of the following statements about financial statement analysis is true or false.Working capital measures a company's immediate debt-paying ability.Accounts receivable...

125.Indicate whether each of the following statements about financial statement analysis is true or false.


Working capital measures a company's immediate debt-paying ability.
Accounts receivable turnover is a direct measure of a company's uncollectible accounts expense.
Accounts receivable turnover is calculated by using the following formula: net credit sales/average accounts receivable.
Net credit sales is sales on account plus sales returns and discounts.
The amount of average receivables can be calculated using the amount of receivables shown on balance sheets for the current year and previous year.

126.Indicate whether each of the following statements about financial statement analysis is true or false.


Having too little inventory can hurt a company's profitability because of lost sales.
Having too much inventory can hurt a company's profitability because of excess costs.
Generally, a lower inventory turnover indicates that merchandise is being handled more efficiently.
Average days to sell inventory is the number of times, on average, that inventory is replaced during the year.
Values for the inventory turnover ratio vary widely among different industries.