Keystone Resources has a net profit margin of 10 percent and earnings after taxes of $2.1 million. Its current balance sheet is as follows:

Current assets	$7,000,000		Current liabilities	$3,600,000
Fixed assets	10,000,000		Long-term debt	5,500,000
Total assets	$17,000,000		Common stock	2,900,000
			Retained earnings	5,000,000
			Total liabilities and stockholders equity	$17,000,000

1. Calculate Keystones return on stockholders equity. Round your answer to two decimal places.

   %

2. Industry average ratios are

   Net profit margin	11%
   Total asset turnover	0.9 times
   Equity multiplier	1.3 times

   Compare Keystone's net profit margin, total asset turnover, and equity multiplier to these averages. Round your answers to two decimal places.

   Net profit margin of 10% is -Select-higherlowerItem 2 than the industry average.

   Total asset turnover of times is -Select-higherlowerItem 4 than the industry average.

   Equity multiplier of times is -Select-higherlowerItem 6 than the industry average.

   Overall Keystones return on equity is -Select-higherlowerItem 7 than the industry average and its level of financial risk is -Select-higherlowerItem 8 .

3. Keystone has inventories of $3.1 million. Compute the firms quick ratio. Round your answer to two decimal places. times