Asset turnover 2.6

Return on equity 40.3%

Tax rate 25%

Net income/sales 15%

Accounts payable turnover 18

Accounts receivable turnover 12

Interest/sales 4%

Operating cycle 85 days

Calculate the following ratios:

1. Inventory turnover,
2. Cash cycle,
3. Asset-to equity ratio
4. Return on assets

(Hint: operating cycle is equal to the days of inventories in stock plus the days of accounts receivable outstanding, cash cycle = operating cycle days of accounts payable outstanding)