6. The Jordan Company has net income of $75,500. DSO is 14.20. Total Assets are $560,000, total receivables are $86,600 and the debt-to-equity ratio is 0.65. What is Jordan company's profit margin, total asset turnover and ROE? 7. Last year Kruse Corp had $305,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets (and thus total invested capital) to $252,500. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure (but with less total debt). By how much would the reduction in assets improve the ROE? (HINTS: Both debt and common equity will be lower, but the debt-to-total-capital ratio will stay the same. Also, please compute the difference between the old and the new ROE, i.e. just subtract the old ROE from the new ROE.)