10. RedCap Manufacturing, Inc. is planning to borrow money by taking out a short term loan (Le, increase notes payable) and depositing this money directly into the rm 5 checking account (i.e., increase cash). RedCap believes that this event will have no a'ect on either sales or costs, and therefore no affect on net income. All else constant, this new policy should cause the rm 5 guick ratio (asSuming an initial quick ratio of 1.5) to: a. Increase b. Decrease c. No Change (1. Not enough information is provided to answer this question. 11. BIneHat, Inc. is planning to use excess cash that the company has in its checking account {i.e., reduce cash) to pay 011' a long term loan balance. (i.e., decrease long-term debt). BhJeHat believes that this event will have no a'ect on either sales or costs, and therefore no affect on net income. All else constant, this new policy should cause the rm s debt ratio {asSuming an initial debt ratio of 45%) to: a. Increase b. Decrease c. No Change d. Not enough information is provided to answer this question. 12. GreenChapeau, Inc. is planning to increase its shortvterm loans (i.e., increase notes payable) to pay for an increase in the rm s basic inventory level (i.e., increase inventory}. GreenChapean believes that this event will have no a'eet on either sales or costs, and therefore no a'ect on net income. All else constant, this new policy should cause the rm 5 current ratio (assuming a current ratio of 1.5) to: a. Increase b. Decrease c. No Change (1. Not enough information is provided to answer this question. All of the following questions are openended problems. You must compute an answer for every problem. For percentage answers, calculate your answer as a percent rounded to 2 decimal places. For example, you would record RDA = .1263974 as 12.64% (note that on uLearn you will enter 12.64 without the percent sign). For dollar answers, round to the nearest dollar. For example, you would record $12,345.83943 as $12,346 (note that on uLearn you will enter 12346 without a comma and without the dollar sign). 13. Felton Farm Supplies, Inc. has an BOA (retina on assets) of 10 percent, total assets of $300,000 and a net prot margin of 4.5 percent. 1What are Felton Farm Supplies annual sales? 14. Krisle and Kringle's debt-towtotal assets ratio is 0.?45 (i.e., debt ratio = 74.5%). What is the company s debt~ to-equity ratio? (Enter answer as a ratio that is, do not convert to a percent). 15. Philips, Inc has a debt ratio of 75% and ROE = 12%. What is Phillips RDA? (Enter answer as a percent). 16. A rm has an RDA of 18% and a debtfequity ratio of 0.65. The rm's ROE is . {Enter answer as a percent)