1. Using the financial statements above, compare the equity multiplier from both 2013 and 2014. During this time frame, the equity multiplier:

A.	decreased, indicating that a larger portion of asset financing is being done through debt

B.	decreased, indicating that a smaller portion of asset financing is being done through debt

C.	remained unchanged

D.	increased, indicating that a larger portion of asset financing is being done through debt

E.	increased, indicating that a smaller portion of asset financing is being done through debt

2. Using the financial statements above, calculate the quick ratio for 2013.

A.

2.05

B.

2.14

C. 1.55 D. 1.50

E.	None of the above

Income 2014 2013 2014 2013 Balance Sheet Cash Accounts Receivable Inventory Net fixed assets Statement Revenue $14,000 S10,800 S3,600 $900 $720 $6,600$5,580 $180 $2,700$2,200 $800 $1,400$1,000 $9,100$8,000 S600 Cost of goods soldS5,000 $1,400 S1,000 SG&A expense Depreciation EBIT S300 $2,200$1,800 $4,100$3,600 Total Assets $13,800$12,000 Interest Expense Income Tax Net Income Accounts Payable Other Current Liabilities Long-Term Debt Other Long-Term Liabilities $1,400$1,600 $400 $4,000$2,400 S0 $800 S0 Total Liabilities $6,200$4,400 Common Stock Retained Earnings $1,130$4,000 $6,470$3,600 Total Equity $7,600$7,600