1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity divided by total assets 3. A 0.50 (50%) debt-equity ratio would suggest that a firm has: a. 50% of its assets financed with debt b. 33-1/3% of it assets financed with debt c. an Equity Multiplier of 1.667 d. 66-23% of its assets financed with debt 4. Computer Geeks has sales of $521,000, a profit margin of 14.8%, a total asset turnover rate of 2.16, and an equity multiplier of 1.3. What is the return on equity? a. 8.91% b. 18.28% c. 32.11% d. 41.56% 5. Which of the following best indicates a firm is utilizing its assets efficiently that it has in the past? a. An increase in the asset turnover ratio b. An increase in days' sales outstanding c. A decrease in profit margin d. A decrease in the inventory turnover rate