Review the financial data of NOP Inc.:

Income Statement ($ millions)

• Sales: $6,500
• Cost of Goods Sold: $4,000
• Gross Profit: $2,500
• Operating Expenses: $1,800
• Operating Profit: $700
• Interest Expense: $110
• Tax Expense: $120
• Net Income: $470

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $120
  • Accounts Receivable: $500
  • Inventory: $650
  • Total Current Assets: $1,270
• Long-term Assets:
  • Property, Plant & Equipment: $2,300
  • Other Long-term Assets: $930
  • Total Long-term Assets: $3,230
  • Total Assets: $4,500
• Current Liabilities:
  • Trade Payables: $400
  • Short-term Loans: $200
  • Total Current Liabilities: $600
• Long-term Liabilities:
  • Long-term Debt: $1,300
  • Total Liabilities: $1,900
• Equity:
  • Common Shares: $250
  • Retained Earnings: $2,350
  • Total Equity: $2,600
  • Total Liabilities & Equity: $4,500

Requirements:

a) Recommend ways NOP Inc. can finance a $85 million investment without using its cash reserves. b) Calculate the quick ratio. c) Determine the return on equity (ROE). d) Assess the times interest earned (TIE) ratio.