1) Whitt's BBQ has sales of $5,000,000, a profit margin of 7.4 percent, and a capital intensity ratio of .89. What is the total asset turnover rate?

a. 2.02

b. 1.12

c. 1.42

d. 1.28

2) Christopher Schlesinger is the owner of a bookstore. Which ratio should he compute if he wants to know the degree of financial leverage?

a. Cash coverage ratio

b. Current ratio

c. Quick ratio

d. Total debt ratio