Consider the following financial data for Brown Manufacturing:

Balance Sheet as of December 31, 2012
Cash & equivalents	$	226,500		Accounts payable	$	85,500
Receivables		276,000		Short-term bank note		368,000
Inventories		199,000		Accrued wages & taxes		151,000
Total current assets	$	701,500		Total current liabilities	$	604,500
				Long-term debt		42,000
Net fixed assets		868,000		Common equity		923,000
Total assets	$	1,569,500		Total liab. & equity	$	1,569,500
Profit & Loss Statement for 2012				Industry Average Ratios
Sales revenue	$	1,852,000		Current ratio		0.9
Cost of sales		1,204,000		Quick ratio		0.5
Gross profit	$	648,000		Days sales outstanding		61 days
Operating expenses		543,500		Inventory turnover		5.9
EBIT	$	104,500		Total asset turnover		0.8
Interest expense		35,000		Net profit margin		5.8%
Pre-tax earnings	$	69,500		Return on assets		4.9%
Income taxes (30%)		20,850		Return on equity		10.8%
Net earnings	$	48,650		Debt ratio		54%

Compared to its competitors, Brown...

	a.	generates less profit per dollar of total assets.
	b.	has lower short-term liquidity ratios.
	c.	has a higher debt ratio.
	d.	has a lower inventory turnover ratio.
	e.	has a lower total asset turnover ratio.