1a. The Outlet has current assets of $1,360, total assets of $6,820, net working capital of $220, and long-term debt of $1,080. What is the debt-equity ratio?

a. 24 percent

b. 48 percent

c. 71 percent

d. 87 percent

e. 94 percent

1b. Carl Co. has annual sales of $857,400, total debt of $210,000, total equity of $365,000, and a profit margin of 5.50 percent. What is the return on assets?

a. 5.23 percent

b. 6.29 percent

c. 7.02 percent

d. 8.20 percent

e. 9.77 percent

1c. Herbal Life has equity multiplier of 2.19, a total asset turnover of 1.3, and a profit margin of 4.5 percent. What is the return on equity?

a. 8.94 percent

b. 10.88 percent

c. 12.81 percent

d. 15.11 percent

e. 19.82 percent