A company's ratio of liabilities to stockholders' equity decreased from 0.6 to 0.4 during the year. This is a(n)

a. improvement in the margin of safety for creditors.

b. indication that the company's level of debt is increasing.

c. negative change in the company's financial position.

d. improvement in the company's net income.

Based on the following data, what is the amount of quick assets?

Account	Amount
Accounts payable	$30,000
Accounts receivable	46,000
Accrued liabilities	6,000
Cash	20,000
Intangible assets	40,000
Inventory	71,000
Long-term investments	100,000
Long-term liabilities	75,000
Notes payable (short-term)	20,000
Property, plant, and equipment	630,000
Prepaid expenses	2,000
Temporary investments	30,000

a. $167,000

b. $96,000

c. $66,000

d. $169,000

The balance sheets at the end of each of the first two years of a companys operations indicate the following:

Line Item Description	Year 2	Year 1
Total current assets	$600,000	$580,000
Total investments	70,000	30,000
Total property, plant, and equipment	925,000	745,000
Total current liabilities	175,000	155,000
Total long-term liabilities	370,000	270,000
Preferred 9% stock, $100 par	100,000	100,000
Common stock, $10 par	600,000	600,000
Paid-in capital in excess of par-common stock	60,000	60,000
Retained earnings	290,000	170,000

If net income is $155,000 and interest expense is $40,000 for Year 2, what is the return on total assets for Year 2?

a. 10.5%

b. 12.2%

c. 11.4%

d. 13.2%