1a. Hungry Lunch has a debt-equity ratio of 0.79, sales of $68,700, net income of $85,100, and total debt of $618,400. What is the return on equity?

a. 9.29 percent

b. 10.87 percent

c. 11.01 percent

d. 12.30 percent

e. 14.96 percent

1b. High Mountain Co. has a debt-equity ratio of 0.84, a total asset turnover of 1.38, and a profit margin of 5.1 percent. The total equity is $694,700. What is the amount of the net income?

a. $49,701

b. $52,418

c. $72,134

d. $89,963

e. $98,079

1c. PJ Stores has accounts receivable of $3,506, inventory of $4,407, sales of $218,640, and cost of goods sold of $169,290. How many days does it take the firm to sell its inventory?

a. 3.18 days

b. 4.79 days

c. 9.50 days

d. 11.97 days

e. 18.67 days