25. The Flower Shoppe has accounts receivable of $3,709, inventory of $4,407, sales of $218,640, and cost of goods sold of $167,306. How many days does it take the firm to both sell its inventory and collect the payment on the sale assuming that all sales are on credit? *

a. 14.67 days

b. 15.81 days

c. 16.23 days

d. 17.18 days

e. None of the above

26. Reliable Cars has sales of $807,200, total assets of $1,105,100, and a profit margin of 9.68 percent. The firm has a total debt ratio of 78 percent. What is the return on equity? *

a. 13.09 percent

b. 16.67 percent

c. 17.68 percent

d. 32.14 percent

e. None of the above

27. If a firm produces a twelve percent return on assets and also a twelve percent return on equity, then the firm: *

a. may have short-term, but not long-term debt.

b. is using its assets as efficiently as possible.

c. has no net working capital.

d. has a debt-equity ratio of 1.0.

e. has an equity multiplier of 1.0.