1.What are the annual sales for a firm with $400,000 in debt, a total debt ratio of A, and an asset turnover of 3.0?

a. $1,800,00

b. $1200,00

c. $133,333

d.$3,000,000

2. Which of the following would be most detrimental to a firm's current ratio if that ratio is currently 2.0?

a. buy raw materials on credit

b. Pay off accounts payable

c. Sell marketable securities at cost

d.Pay off a portion of long-term debt with cash