QUESTIONS The following presents the balance sheet for Firm K along with information from the income statement. A competitor. Firm F. has a profit margin of 15%, an asset turnover ratio of 0.8, and an equity multipler of 3.33. Which statement below is false? Income Statement Information Revenue: 3,500 EBIT: 800 Net Income: 200 Total Assets: 2,000 o Current Assets: 600 Cash: 100 Receivables: 200 Inventory: 300 o Noncurrent Assets: 1.400 Net PPS.E: 1,100 Other NCA: 300 Total Liabilities: 1,500 o Current Liabilities: 700 Current Debt: 250 Payables: 300 Accruals: 150 O Noncurrent Liabilities: 800 Long Term Debt: 300 Total Equity 500 Common Stock 400 o Retained Earnings 100 Firm Khas an inflated ROE due to the amount of leverage it has. Firm Fuses its assets more efficiently than Firm K. Firm K's profit margin is on par with Firm F O Firm K is likely more risky than Firm F