Imagine the firm has decreased its cash holdings and purchased equipment (cash on the balance sheet has gone down; fixed assets has gone up) and liquidity, measured by the firm's current ratio, has decreased, which of the following ratios is likely to decrease?

A. Cash Ratio

B. Cash coverage ratio

C. Current asset turnover

D. total asset turnover

E. profit margin

An increase in which of the following will increase the return on equity, all else constant? (CAN BE MORE THAN ONE) I. leverage II. net income III. total asset turnover IV. profit margin