Consider the following selected accounting ratios and accounting data. Both firms are in the same industry. In all cases explain why. Answers with just a letter or a correct letter and an incorrect explanation will not receive partial credit.

Ratio	Firm A	Firm B
Debt Ratio	0.5	0.2
Time Interest Earned Ratio	10	20
Current Ratio	0.5	2
Quick Ratio	0.75	1.5
Inventory Turnover (mrq)	12	3
Total Asset Turnover	1	0.5
Accounts receivable turnover	6	8
Profit Margin on Sales	0.2
Return on Total Assets	0.2	0.22
Return on Common Equity
Price/Earnings Ratio		20
Owner Equity	$3M	$5M

(a) Which of the ratios is mathematically impossible given the definitions?

(b) Which firm would a lender prefer?

(c) Who is more likely to be able to fulfill a relatively large one-time order?

(d) What are the total assets of each of the two firms?