Suppose that you are given the following data for Niles Company :

Note: The data and calculations are based on a $365$day year.

Cash and equivalents $$337,500$

Fixed assets $$975,000$

Sales $$3,750,000$

Net income $$168,750$

Current liabilities $$360,000$

Current ratio $2\mathrm{.}5$

DSO $18\mathrm{.}25$

ROE $12\%$

The current ratio is equal to $\_\_\_\_.$ Plugging in the relevant values for the current ratio and current liabilities, and then solving yields a current assets value of $\_\_\_.$ Adding fixed assets to current assets yields a value of total assets of $\_\_\_$

The days sales outstanding $($DSO$)$ ratio is equal to $\_\_\_.$ Plugging in the relevant values for the DSO ratio and sales, and then solving yields an accounts receivable balance of $\_\_\_\_\_.$Return on equity $($ROE$)$ is to $\_\_\_\_.$ Plugging in the relevant values for ROE and net income yields a value of total common equity of approximately $\_\_\_\_.$Recall that Total Assets$=$Total Liabilities and Equity. Mathematically, total liabilities and equity is equal to$\_\_\_\_.$ Plugging in the relevant values for total liabilities and equity, current liabilities, and equity $($calculated using the previous identify$)$ and then solving for long$-$term debt, yields a long$-$term debt of $\_\_\_\_.$

Return on assets $($ROA$)$ is equal to the product of profit margin multiplied by total assets turnover, which is equivalent to $\_\_\_\_\_\_.$ Plugging in the relevant values for net income and total assets yields an ROA of approximately $\_\_\_\_\_.$ Recall the following identity: Current Assets$=$Cash and equivalents$+$Accounts Receivable$+$Inventories. The quick ratio is equal to $\_\_\_\_\_\_.$ Plugging in the relevant values for current assets, current liabilities, and inventories $($calculated using the previous identity$)$ yields a quick ratio of approximately $\_\_\_\_\_.$Suppose that Niles could reduce its DSO from $18\mathrm{.}25$ to $12.$

Given the formula for DSO from the video, as well as the same annual sales of $$3,750,000,$ the new value accounts receivable $($associated with the new DSO$)$ must be $\_\_\_\_\_,$ all else equal. The change $($or the absolute value of the difference between the original and new values$)$ in accounts receivable represents an amount of approximately $\_\_\_\_\_$ in cash generated. As a result of the stock buy back, the ROA and ROE both $\_\_\_\_\_\_.$Suppose Niles uses the cash generated by the lower DSO to buy back common stock at book value, thus reducing common equity. As a result of this new, lower, DSO, total debt $\_\_\_\_\_\_\_$ and total capital $\_\_\_\_.$ This means that the total debt$/$total capital ratio must $\_\_\_\_\_\_.$

Suppose that the following data is given for Niles Company

Cash and Equivalents: $$787,500$

Fixed Assets: $$2,275,000$

Sales: $$8,750,000$

Net Income: $$393,750$

Current Liabilities: $$840,000$

Current Ratio: $2\mathrm{.}5$

DSO: $18\mathrm{.}25$

ROE: $12\%$

Accounts Receivable would be $\_\_\_\_\_$

Current Assets $\_\_\_\_\_\_\_\_$

Total Assets $\_\_\_\_\_\_$

ROA $\_\_\_\_\_\_\_$

Common Equity $\_\_\_\_\_\_\_$

Quick Ratio $\_\_\_\_\_\_$

Long Term Debt $\_\_\_\_\_\_$

Suppose that niles could reduce it's DSO from $18\mathrm{.}25$ to $12$ and use the cash that was generated to buy back common stock at book value would the following options Increase, Decrease or stay the Same:

Accounts Receivable $\_\_\_\_\_\_\_$

ROA $\_\_\_\_\_\_\_\_\_$

ROE $\_\_\_\_\_\_\_\_\_$

Total Debt$/$Total Capital Ratio $\_\_\_\_\_\_\_\_$