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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
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 $9,000. 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: S5,000 $2,000 $200 35%
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