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Refer to the tables below, answer those 4 questions. (1) What is the firm's days sales outstanding? Assume a 360-day calendar year. (2)The firm's debt

Refer to the tables below, answer those 4 questions. (1) What is the firm's days sales outstanding? Assume a 360-day calendar year. (2)The firm's debt to total assets ratio is? (3)Megaframe's current ratio is? (4) Megaframe's quick ratio is?
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MEGAFRAME COMPUTER COMPANY Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity MEGAFRAME COMPUTER COMPANY Income Statement $50,000 For the year ended December 31 70.000 Sales (all on credit) 110,000 Cost of goods sold 220.000 Gross profit $450,000 Sales and administrative expenses Depreciation Operating profit $70,000 Interest expense 50,000 Profit before taxes 130,000 Taxes (30%) 70,000 Net income 40,000 90,000 $450,000 $875,000 GOODO $275,000 3100ODIO 155.000 $190,000 250010 $165,000 2975010 $115.500 If accounts receivable stays the same, and credit sales go up a. the average collection period will go down and accounts receivable turnover will increase b. the average collection period will go up. c. accounts receivable turnover will decrease. d. the average collection period will go down A higher P/E or M/B ratio typically indicates that a. A firm asset management is not efficient. b. A firm is expected to grow slower in the future. c. A firm has a higher level of risk. d. A firm is expected to grow fast in the future. If a firm increases debt financing and reduces equity financing, typically a. its equity multiplier will decrease, and its ROE will increase. b.its equity multiplier will decrease, and its ROE will decrease. c. its equity multiplier will increase, and its ROE will decrease. d.its equity multiplier will increase, and its ROE will increase

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