An increase in the current ratio indicates Select one: a. worsening liquidity position of the company O b. the company will likely be perceived as less risky by lenders. c. an improvement in the company's cash flows. . d. an improvement in asset management efficiency. X out Assume that companies A and B both have the same dollar value of total assets and both have return on assets equal to 8%. Further, assume that company A has a return on equity equal to 10%, while company B has a return on equity equal to 15%. Based on this information we could conclude that Select one: a. Company B was more profitable than Company A. b. Company B managed its assets more efficiently than Company A. * c. Company B used more financial leverage than Company A. d. The managers of Company B did a better job managing the overall business performance than the management of Company A. Use the financial statement information provided below to compute return on equity. What is the return on equity? LaPearla Company Income Statement for Year 2005 (in millions) LaPearla Company Balance Sheet, End of Year 2005 (in millions) 10,000 5,500 4.500 Current assets Net plant and equipment Total assets 2,000 18,000 20,000 800 Revenues Cost of goods sold Gross profit Selling, general, and administrative expenses Operating income Interest expense Earnings before was Tues 3.700 500 3.200 960 2.240 Current liabilities Long-term debe Common stock and paid-in capital Retained earning Total liabiliri Total liabilities and equity 1,000 5.000 500 13.500 20,000 Net income Select one: a. 1120% b. 11.20% c. 16.00% d. 4.48% x e. 1600% 1.4489 Use the balance sheet pictured below to calculate the