You observe that a firm's profit margin and equity multiplier exceed the industry average, while its return on equity is below the industry average. what can you conclude?

a. Return on assets is above the industry average

b. Total assets turnover ratio is above the industry average

c. Total assets turnover ratio is below the industry average

d. none is correct

Walter Industries' current ratio is 0.5. Considered alone, which of the following actions would increase the company's current ratio?

a. Use cash to reduce short-term notes payable.

b. borrow using long term bonds to increase the cash

c. Use cash to reduce accounts payable

d. Use cash to reduce accruals