The following information should be used for the next two problems.

In its closing financial statements for its first year in business, the Steinberg Company, had cash of $242, accounts receivable of $850, inventory of $820, net fixed assets of $3,408, accounts payable of $700, short-term notes payable of $740, long-term liabilities of $1,100, common stock of $1,160, retained earnings of $1,620, net sales of $2,768, cost of goods sold of $1,210, depreciation of $360, interest expense of $160, taxes of $312, addition to retained earnings of $508, and dividends paid of $218.

What is the current ratio for Steinberg Company?

a. 1.46

b. 1.33

c. 1.23

d. 1.21

e. 1.13

What is the equity multiplier for Steinberg Company?

a. 4.59 times

b. 2.35 times

c. 0.48 times

d. 1.12 times

e. 1.91 times

In general, a decline in the Variable Cost Revenue Ratio (VCRR) would:

a. decrease the contribution margin

b. increase the contribution margin

c. decrease the breakeven point

d. both b and c

e. both a and c