- SIVU UN SOLS U SED RUUMI U Lyuy. Both the industry's ROE and ROA are stronger than for the company, even though the company has 5 percentage points more of profit margin. d. The compan The company needs to increase its debt level some and/or improve the productiveness of its assets in order to keep up with the industry's return on equity. e. The company's return on equity is hurt by the fact that it has no debt. The Haley Joseph Company has $2,450,000 in current assets and $620,000 in current liabilities. Its initial inventory level is $330,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 3.0? a. $130,000 b. $233,145 c. $295,000 d. $190,564 e. None of the above. Last year Tupa Incorporated had sales revenue of $650,000. Costs other than depreciation and interest expense were 35 percent of sales. Depreciation expense was $160,000, interest expense was $70,000, and dividends paid were $35,000. Which of the following statements is most TRUE? (Use the old corporate tax rates.) The firm's taxable income was $157 500