Consider the following financial data for Guerrero Industries:

Balance Sheet as of December 31, 2019
Cash & equivalents	$	76,000		Accounts payable	$	25,000
Receivables		103,000		Notes payable		86,500
Inventories		46,500		Accrued wages & taxes		33,000
Total current assets	$	225,500		Total current liabilities	$	144,500
				Long-term debt		324,000
Net fixed assets		520,500		Common equity		277,500
Total assets	$	746,000		Total liab. & equity	$	746,000
Income Statement for 2019				Industry Average Ratios
Sales	$	544,500		Current ratio		1.8
Cost of sales		354,000		Quick ratio		1.5
Gross profit	$	190,500		Days sales outstanding		61 days
Operating expenses		113,500		Inventory turnover		9.2
EBIT	$	77,000		Total asset turnover		0.4
Interest expense		34,000		Net profit margin		15.7%
Pre-tax income	$	43,000		Return on assets		6.1%
Income taxes (25%)		10,750		Return on equity		17.0%
Net earnings	$	32,250		Debt-to-capital ratio		51%

Compared to its peers, Guerrero...

	a.	has a higher return on assets.
	b.	is more likely to have trouble paying its short-term debts.
	c.	generates lower sales per dollar of inventory.
	d.	keeps a relatively high percentage of its sales as profit.
	e.	has a relatively low debt-to-capital ratio.