1. A company computes its accounts receivable turnover to be 20. Based on this information, find the average collection period. If the company has a credit collection period of 30 days, explain the relationship between the credit collection period and the average collection period.

2. If a company finds that its fixed asset turnover (net sales/fixed assets) has fallen to less than 1, what does this indicate?

3. If a company has $181,000 in total liabilities and $225,000 in total assets,

   what percentage of total assets is being financed with the use of other peoples money?

4. Distinguish between gross profit margin, operating profit margin, and net profit margin and provide the formula for each ratio.