6. The working capital of Regalado Co. is P600,000 and its current ratio is 3 to 1. The amount of current assets is a. P900,000 b. P1,200,000 c. P600,000 d. P1,800,000 23. Rainier Inc. has $2 million in current assets, its current ratio is 1.6, and its quick ratio is 1.2. The company plans to raise funds as additional notes payable and to use these funds to increase inventory. By how much can Rainier's short-term debt (notes payable) increase without pushing its quick ratio below 0.8? a. $625,000 b. $556,000 c. $333,000 d. $278,000 24.Shepherd Enterprises has an ROE of 15 percent, a debt ratio of 40 percent, and a profit margin of 5 percent. The company's total assets equal $800 million. What are the company's sales? (Assume that the company has no preferred stock.) a. $1,440,000,000 b. $2,400,000,000 c. $ 360,000,000 d. $ 960,000,000 25.A fire has destroyed many of the financial records of R. Son & Co. You are assigned to put together a financial report. You have found the return on equity to be 12% and the debt ratio was 0.40. What was the return on assets? a. 5.35% b. 8.40% c. 6.60% d. 7.20% 27. Selzer Inc. sells all its merchandise on credit. It has a profit margin of 4 percent, days sales outstanding equal to 60 days, receivables of $150,000, total assets of $3 million, and a debt ratio of 0.64. What is the firm's return on equity (ROE)? Assume a 360- day year. a. 7.1% b. 33.3% c. 8.1% d. 3.3% 28. Deb & Co. has a debt ratio of 0.50, a total assets turnover of 0.25, and a profit margin of 10%. The president is unhappy with the current return on equity, and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 14% and (2) increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the 14% profit margin, is required to double the return on equity? a. 0.75 b. 0.70 c. 0.65 d. 0.55 29. Last year, Quayle Energy had sales of $200 million and its inventory turnover ratio was 5.0. The company's current assets totaled $100 million and its current ratio was 1.2. What was the company's quick ratio? a. 1.20 b. 1.39 c. 0.72 d. 0.55 30.Oliver Incorporated has a current ratio equal to 1.6 and a quick ratio equal to 1.2. The company has $2 million in sales and its current liabilities are $1 million. What is the company's inventory turnover ratio? a. 5.0 b. 5.2 c. 5.5 d. 6.0