Consider the financial data for HIJ Inc.:

Income Statement ($ millions)

• Sales: $4,800
• Cost of Sales: $2,900
• Gross Profit: $1,900
• Operating Expenses: $1,400
• Operating Profit: $500
• Interest Expenses: $120
• Tax Expense: $90
• Net Income: $290

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $100
  • Accounts Receivable: $350
  • Inventory: $500
  • Total Current Assets: $950
• Non-current Assets:
  • Property, Plant & Equipment: $1,800
  • Other Long-term Assets: $750
  • Total Non-current Assets: $2,550
  • Total Assets: $3,500
• Current Liabilities:
  • Accounts Payable: $350
  • Short-term Debt: $250
  • Total Current Liabilities: $600
• Long-term Liabilities:
  • Long-term Debt: $1,000
  • Total Liabilities: $1,600
• Equity:
  • Common Stock: $200
  • Retained Earnings: $1,700
  • Total Equity: $1,900
  • Total Liabilities & Equity: $3,500

Requirements:

a) Suggest ways for HIJ Inc. to fund a $75 million R&D project without using its cash reserves. b) Calculate the quick ratio. c) Determine the return on assets (ROA). d) Assess the equity multiplier.