All of the following are useful purposes of pro forma financial statements except a. they satisfy the sec requirement for audited financial disclosure. b. they provide a useful tool for analyzing the effects of a firm's forecasts on its financial performance. c. they serve as a benchmark to compare actual results to planned activities. d. they can be used to control, or monitor a firm's progress for a planning period.

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i.e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant.a. the division's basic earning power ratio is above the average of other firms in its industry.b. the division's total assets turnover ratio is below the average for other firms in its industry.c. the division's debt ratio is above the average for other firms in the industry.d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.