1.To increase total asset turnover, management must either increase sales or reduce total stockholders' equity.

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2.The formula for the average sale period is: Average sale period = Accounts receivable turnover Inventory turnover.

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3.The formula for the net profit margin percentage is: Net profit margin percentage = Net income Sales.

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4.Earnings per share is computed by multiplying net income by the average number of common shares outstanding.

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5.When computing the return on total assets, the interest expense is added back to net income to show what earnings would have been if the company had no debt.

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