The following data apply to A.L Kaiser & Company(million of dollars)

Cash and equivalents $ 100.00

Fixed assets 283.50

Sales 1,000.00

Net Income 50.00

Current liabilities 105.50

Carrent ratio 3.00X

DSO* 40.55 day

ROE 12.00%

*This calculation is based on a365 day year

Kalser has no preferred stock-only common equity, current liabilities, and long term debt.

a. Find Kaisers (1) accounts receivable, (2) Current Assets, (3) total assets, (4) ROA, (5) common equity, (6) quick ratio, and (7) long-term debt.

b. In Part a, you should have found that Kaisersaccounts receivable (A/R) = $111.1 million. If Kaiser could reduce its DSO from 40.55 day to 30.4 day while holding other things constan hom much cash would it generate ? If this cash were used to buy back common stock (at book value), thus reducing common equity, how would this affect (1) the ROE, (2) the ROA, and (3) the total debt/total assets ratio?