1. Keller Cosmetics maintains an operating profit margin of 8.60% and a sales-to-assets ratio of 3.10. It has assets of $620,000 and equity of $420,000. Assume that interest payments are $42,000 and the tax rate is 35%.

> What is the return on assets? (Enter your answer as a percent rounded to 2 decimal places.)

2. Keller Cosmetics maintains an operating profit margin of 8.60% and a sales-to-assets ratio of 3.10. It has assets of $620,000 and equity of $420,000. Assume that interest payments are $42,000 and the tax rate is 35%.

>What is the return on equity?(Enter your answer as a percent rounded to 2 decimal places.)

3. Indicate whether the following statements are true or false. Assume the firm carries inventory.

A company's debt-equity ratio is always less than 1. True or False?

4. The quick ratio is always less than the current ratio. True or False?