1. Land Land Land, Inc. has a debt ratio of 0.6. The average debt ratio for the firm's industry is 0.4. Based on this information you know that:

	LLL has relatively more debt than the average firm in the industry.
	LLL has relatively less debt than the average firm in the industry.
	LLL is more liquid than the average firm in the industry.
	LLL is less liquid than the average firm in the industry.

2. Balance Sheet Current assets Cash 980,000 Acc receivable not given Inventories 1,040,000 Fixed assets 3,840,000 TOTAL ASSETS 6,500,000 Current liabilities Acc payable not given Long-term debt 2,000,000 Common stock 780,000 Retained earnings 3,350,000 TOTAL LIAB and EQUITY 6,500,000 Income Statement Sales 19,500,000 Operating expense 14,630,000 EBIT 4,870,000 Interest expense 240,000 EBT 4,630,000 Taxes 1,852,000 Net income 2,778,000 What is the firm's debt ratio?

	30.77%
	36.46%
	63.54%
	94.31%
	88.00%

3. The RRR Company has a target current ratio of 3. Presently, the current ratio is 4.2 based on current assets of $12,978,000. If RRR expands its inventory using short-term liabilities (maturities less than one year), how much additional funding can it obtain before its target current ratio is reached? (Round your answer to the nearest dollar.)

	$1,236,000
	$1,854,000
	$1,497,414
	$1,952,262
	$2,084,452