The following data apply to A.L. Kaiser & Company ($ million):

Cash and equivalents$100.00

Fixed assets$283.50

Sales$1,000.00

Net income$50.00

Quick ratio2.0x

Current ratio3.0x

DSO40.0 days

ROE12.0%

Kaiser has no preferred stockonly common equity, current liabilities, and long-term debt.

a.Find Kaiser's (1) accounts receivable (A/R), (2) current liabilities, (3) current assets, (4) total assets, (5) ROA, (6) common equity, and (7) long-term debt.

b.If Kaiser could reduce its DSO from 40 days to 30 days while holding other things constant, how much cash would it generate? If this cash were used to buy back common stock (at book value) and thereby reduce the amount of common equity, how would this action affect the company's (1) ROE, (2) ROA, and (3) total debt/total assets ratio