ANALYSIS OF FINANCIAL STATEMENTS 3 - 11 SELF-TEST PROBLEMS 1. Info Technics Inc. has an equity multiplier of 2.75. The company's assets are financed with some combination of long-term debt and common equity. What is the company's debt ratio? a. 25.00% b. 36.36% c. 52.48% d. 63.64% e. 75.00% 2. Refer to Self-Test Problem 1. What is the company's common equity ratio? a. 25.00% b. 36.36% c. 52.48% d. 63.64% e. 75.00% Cutler Enterprises has current assets equal to $4.5 million. The company's current ratio is 1.25, and its quick ratio is 0.75. What is the firm's level of current liabilities (in millions)? 3. a. $0.8 b. $1.8 c. $2.4 d. $2.9 e. $3.6 4. Refer to Self-Test Problem 3. What is the firm's level of inventories (in millions)? a. $0.8 b. $1.8 c. $2.4 d. $2.9 e. $3.6 (The following financial statements apply to the next six Self-Test Problems.) Roberts Manufacturing Balance Sheet December 31, 2000 (Dollars in Thousands) Cash Receivables Inventory Total current assets Net fixed assets $ 200 245 625 $1,070 1,200 Accounts payable Notes payable Other current liabilities Total current liabilities Long-term debt Common equity Total liabilities and equity $ 205 425 115 $ 745 420 1.105 $2270 Total assets $2.270