A firm has net income of $700,000 and sales of $22,000,000. Its interest expense is $220,000 and the firm's tax rate is 40%. Assuming this firm paid a dividend of $250,000, its operating profit margin (as a percent rounded to 1 decimal place) is: 7.8% There is not enough information provided to answer this question. 5.7% 5.0% 2.2% 6.3% Iggy's Igloos, Inc. is planning to reduce the number of days it takes the company to collect credit sales from 45 days to 30 days. Iggy's Igloos believes that this policy change will have no effect on either sales or costs. Any asset changes resulting from this new policy will be offset by a corresponding and equal change in equity. All else constant, this new collection policy should be expected to: NOTE: Choose ALL that apply. This is an ALL or NOTHING question. You must select ALL correct answers, and only the correct answers, to receive any credit for this question Decrease the firm's current ratio (assume that prior to this change, the company's current ratio - 1.3). Decrease the firm's quick ratio (assume that prior to this change, the company's quick ratio = 0.8). Increase the firm's average collection period (assume that prior to this change, fie company's average collection period = 30 days). Increase the firm's return on equity (assume that prior to this change, the company's ROE = 25%). Decrease the firm's debt ratio (assume that prior to this change, the company's debt ratio = 40%). Increase the firm's inventory turnover ratio (assume that prior to this change, the inventory turnover ratio = 6.2). The average collection period is a measure of the number of uncollectable accounts. the expected level of bad debt losses. the profitability of credit sales. the average period of time it takes to collect on accounts. None of the above