Below are the financial details for QRS Corp:

Income Statement ($ millions)

• Sales Revenue: $7,800
• Cost of Sales: $4,600
• Gross Profit: $3,200
• Operating Expenses: $2,400
• Operating Profit: $800
• Interest Expense: $160
• Tax Expense: $120
• Net Income: $520

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $130
  • Accounts Receivable: $600
  • Inventory: $700
  • Total Current Assets: $1,430
• Non-current Assets:
  • Property, Plant & Equipment: $3,000
  • Other Long-term Assets: $1,270
  • Total Non-current Assets: $4,270
  • Total Assets: $5,700
• Current Liabilities:
  • Accounts Payable: $500
  • Short-term Debt: $250
  • Total Current Liabilities: $750
• Long-term Liabilities:
  • Long-term Debt: $1,800
  • Total Liabilities: $2,550
• Equity:
  • Common Shares: $400
  • Retained Earnings: $2,750
  • Total Equity: $3,150
  • Total Liabilities & Equity: $5,700

Requirements:

a) Suggest financing options for QRS Corp to raise $120 million for a new distribution center without using current cash. b) Calculate the current ratio. c) Compute the return on assets (ROA). d) Evaluate the interest coverage ratio.