- The D. A. Winston Corporation earned an operating profit margin of 10.4 percent based on sales of $10.4 million and total assets of $5.8 million last year.

a. What was Winston's total asset turnover ratio?

b. During the coming year the company president has set a goal of attaining a total asset turnover of 3.2. How much must firm sales rise, other things being the same, for the goal to be achieved? (State your answer in both dollars and percentage increase in sales.)

c. What was Winston's operating return on assets last year? Assuming the firm's operating profit margin remains the same, what will the operating return on assets be next year if the total asset turnover goal is achieved?

- The Tabor Sales Company had a gross profit margin (gross profits divided by sales) of 30.9 percent and sales of $9.5 million last year. Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor's current assets equal $2.1 million, its current liabilities equal $302,000, and it has $96,000 in cash plus marketable securities.

a. If Tabor's accounts receivable are $562,500, what is its average collection period?

b. If Tabor reduces its average collection period to 22 days, what will be its new level of accounts receivable?

c. Tabor's inventory turnover ratio is 9.2 times. What is the level of Tabor's inventories?