1) Assume you are given the following relationships for ABC Inc. Sales / Total Assets = 1.2X Return on Assets (ROA) 4% Return on Equity (ROE) 7% Calculate ABC Inc.s profit margin and debt ratio. Show your working.

2) ABC Inc. has a DSO of 15 days. The companys average daily sales are 30,000. What is the level of its accounts receivable? Assume there are 360 days in a year. Show your working.

3) You just won a lottery for $2,000,000. The company promises to make a payment of $311,000 every year for the next ten years. You are very excited. If the rate of interest is 9.5% pa, and assuming that there is no inflation, have you really won $2,000,000? Use time value of money to support your calculations.