Consider the following financial data for Terry Industries:

Statement of Financial Position as of December 31, 2020
Cash	$	47,500		Accounts payable	$	23,500
Accts. receivable		93,000		Short-term bank note		101,000
Inventories		78,500		Accruals		17,000
Total current assets	$	219,000		Total current liabilities	$	141,500
				Long-term debt		280,000
Net fixed assets		804,000		Common equity		601,500
Total assets	$	1,023,000		Total liab. & equity	$	1,023,000
Profit & Loss Statement for 2020				Industry Average Ratios
Sales revenue	$	736,500		Current ratio		1.7
Cost of sales		456,500		Quick ratio		1.1
Gross profit	$	280,000		Days sales outstanding		54 days
Operating expenses		179,500		Inventory turnover		5.7
EBIT	$	100,500		Total asset turnover		0.4
Interest expense		24,000		Net profit margin		7.7%
Pre-tax income	$	76,500		Return on assets		3.4%
Income taxes (25%)		19,125		Return on equity		7.5%
Net earnings	$	57,375		Debt-to-capital ratio		49%

Compared to its competitors, Terry...

	a.	has a lower total asset turnover ratio.
	b.	converts its receivables to cash more slowly.
	c.	uses more financial leverage.
	d.	has lower current and quick ratios.
	e.	generates less profit per dollar of total assets.