Review the following financial statements of MNO Group:

Income Statement ($ millions)

• Sales: $2,800
• Cost of Sales: $1,400
• Gross Profit: $1,400
• Operating Expenses: $950
• Operating Profit: $450
• Interest Expense: $60
• Tax Expense: $40
• Net Profit: $350

Balance Sheet ($ millions)

• Current Assets:
  • Cash: $35
  • Accounts Receivable: $190
  • Inventory: $280
  • Total Current Assets: $505
• Long-term Assets:
  • Property, Plant & Equipment: $750
  • Other Long-term Assets: $245
  • Total Long-term Assets: $995
  • Total Assets: $1,500
• Current Liabilities:
  • Trade Payables: $160
  • Short-term Loans: $90
  • Total Current Liabilities: $250
• Long-term Liabilities:
  • Long-term Debt: $350
  • Total Liabilities: $600
• Equity:
  • Common Stock: $100
  • Retained Earnings: $800
  • Total Equity: $900
  • Total Liabilities & Equity: $1,500

Requirements:

a) Suggest methods MNO Group could use to finance a $40 million expansion without tapping into current cash reserves. b) Calculate the current ratio. c) Determine the return on assets (ROA). d) Assess the equity multiplier.