1. Asset Management Ratios If a firm's inventory turnover ratio is low, what might that mean about the firm's level of sales, its average level of inventory, or both? 2. Days Sales Outstanding Calculate the days sales outstanding given the following information Day Sales (on credit) A/R $5,000 $4000 $2,000 $3,000 3* "On day 3, $1,000 of the sales made on day 1 are collected in cash. A/R at end of day 3 before collection: 14,000 A/R at end of day 3 after collection: 13,000 3. Debt Management Ratios A firm's times-interest-earned was 4.20. Its earnings before interest and taxes was S9,000. What was its interest expense? 4. Profitability Ratios-Margin Calculate the profit margin for a company given the following information: Net Sales Total Operating Costs Interest Expense Tax Rate $5,000 $2,000 $200 35%