Ratios:

Current Ratio: 3.6093

Quick Ratio: 2.1799

Times Interest Earned: 9.9143

ROE 16.48%

ROA 12.01%

Equity Multiplier 1.3714

Inventory Turnover 1.3489

Which of the following statements are true with respect to the Profitability Ratios? In the list above, these are shown as ROA and ROE, where: ROA = Net Income / Total Assets ROE = Net Income / Owner's Equity

Select one:

a. The ROA ratio is a good measure of the firms liquidity

b. The ROE ratio is a good measure of the firms liquidity

c. An ROE of 16.5% would suggest that the firm is generating $16.50 of Net Income for each $100 of Owners Equity

d. All of the above statements are true

e. None of the above statements are true.