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Q-4: Cartwright Brothers has the following balance sheet (all numbers are expressed in millions of dollars): [6 Marks] Cash $ 250 Accounts payable $ 300

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Q-4: Cartwright Brothers has the following balance sheet (all numbers are expressed in millions of dollars): [6 Marks] Cash $ 250 Accounts payable $ 300 Accounts receivable 250 Notes payable 300 Inventories 250 Long-term debt 600 Net fixed assets 1,250 Common stock 800 Total assets $2,000 Total claims $2,000 Cartwright's average daily sales are $16 million. Currently, Cartwright's day's sales outstanding (DSO) is well above the industry average of 12. Cartwright is implementing a plan that is designed to reduce its DSO to 12 without reducing its sales. If successful the plan will free up cash, half of which will be used to reduce long term debt and the other half will be used to reduce accounts payable. What will be the current ratio, debt ratio and total assets turnover if Cartwright fully succeeds in implementing this plan

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