Consider the following financial data for Carmichael Corp.:

Balance Sheet as of December 31, 2019
Cash	$	50,000		Accounts payable	$	31,000
Receivables		87,500		Short-term bank note		97,500
Inventories		76,000		Accruals		21,000
Total current assets	$	213,500		Total current liabilities	$	149,500
				Long-term debt		534,500
Net plant & equip.		881,000		Common equity		410,500
Total assets	$	1,094,500		Total liab. & equity	$	1,094,500
Statement of Earnings for 2019				Industry Average Ratios
Sales revenue	$	919,500		Current ratio		1.8
Cost of sales		561,000		Quick ratio		1.4
Gross profit	$	358,500		Days sales outstanding		44 days
Operating expenses		257,000		Inventory turnover		15.0
EBIT	$	101,500		Total asset turnover		1.1
Interest expense		41,000		Net profit margin		4.7%
Pre-tax income	$	60,500		Return on assets		5.3%
Income taxes (35%)		21,175		Return on equity		12.6%
Net profit	$	39,325		Debt-to-capital ratio		46%

Compared to its competitors, Carmichael...

	a.	uses less debt financing.
	b.	has a higher return on equity.
	c.	generates more sales per dollar of inventory.
	d.	is more likely to have trouble paying its short-term debts.
	e.	has a higher profit margin.