Consider the following financial data for Brown Industries:

Balance Sheet as of December 31, 2012
Cash & equivalents	$	45,000		Accounts payable	$	40,000
Accts. receivable		68,000		Notes payable		34,500
Inventories		55,500		Accrued wages & taxes		21,000
Total current assets	$	168,500		Total current liabilities	$	95,500
				Long-term debt		213,500
Net fixed assets		602,500		Common equity		462,000
Total assets	$	771,000		Total liab. & equity	$	771,000
Statement of Earnings for 2012				Industry Average Ratios
Net sales	$	686,000		Current ratio		2.0
Cost of sales		514,500		Quick ratio		1.3
Gross profit	$	171,500		Days sales outstanding		25 days
Operating expenses		92,500		Inventory turnover		8.6
EBIT	$	79,000		Total asset turnover		0.6
Interest expense		25,000		Net profit margin		11.8%
Pre-tax earnings	$	54,000		Return on assets		7.1%
Income taxes (30%)		16,200		Return on equity		9.6%
Net profit	$	37,800		Debt ratio		26%

Compared to other firms in the same industry, Brown...

	a.	generates more profit per dollar of shareholders' equity.
	b.	converts its receivables to cash more quickly.
	c.	uses less debt financing.
	d.	has a higher profit margin.
	e.	is in a relatively weak short-term liquidity position.