Return on Equity

3. PB Inc. sells only on credit. It has a Return on Sales (ROS) of 4%, and

Days Sales Outstanding (DSO) of 45 days that is calculated on a 365-day year.

Return on Equity (ROE) is 5%, Assets are $1.5 million, and the company's debt

ratio (debt to assets) is 0.67. What is PB Inc's Receivables balance?

a. $78,125

b. $154,100

c. $77,055

d. $49,315

e. none of the above

Answer is c. Prove It below