Indicate Whether Each of the Following Statements About Financial Statement

True/False

Indicate whether each of the following statements about financial statement analysis is true or false.________ a)Working capital measures a company's immediate debt-paying ability.________ b)Accounts receivable turnover is a direct measure of a company's uncollectible accounts expense.________ c)Accounts receivable turnover is calculated by using the following formula: net credit sales ÷ average accounts receivable.________ d)Net credit sales are comprised of sales on account plus sales returns and discounts.________ e)The amount of average receivables can be calculated using the amount of receivables shown on balance sheets for the current year and previous year.