Vince Corporation has current assets of $300,000 and current liabilities of $175,000.

Compute the effect of each of the following transactions on Vince's current ratio:

1. Refinanced a $50,000 long-term mortgage with a short-term note.
2. Purchasing $80,000 of merchandise inventory with short-term accounts payable.
3. Paying $30,000 ofshort-term accounts payable.
4. Collecting $40,000 of short-term accounts receivable.

Part B (20 points)

Selected data of the Peninsula Company follow:

As of December 31

Balance Sheet Data

2014

2013

Accounts receivable

$671,000

$642,000

Allowance for doubtful accounts

31,000

22,000

Net accounts receivable

$640,000

$620,000

Inventorieslower of cost or market

$542,500

$642,500

Year Ended December 31

Income Statement Data

2014

2013

Net credit sales

$3,150,000

$3,000,000

Net cash sales

800,000

600,000

Net sales

$3,950,000

$3,600,000

Cost of goods sold

$2,370,000

$2,160,000

Selling, general, and administrative expenses

475,000

350,000

Other

150,000

125,000

Total operating expenses

$2,995,000

$2,635,000

Net income

$955,000

$965,000

1. What is the accounts receivable turnover for 2014?
2. What is the inventory turnover for 2014?

Part C (40 points)

Selected information taken from the 2014 annual report of Aardvark Company follows.During 2014, the company had no nonoperating or nonrecurring items included in income and had no outstanding preferred stock.

($ in millions)

2014

2013

Sales

$19,903

$18,781

Interest expense

130

169

Net income

1,153

1,088

Total assets

12,673

12,461

Dividends

(153)

(131)

Total stockholders' equity

$4,288

$4,007

Assumed tax rate

35%

35%

Industry ROA

7.32%

Industry operating profit margin

6.1%

For 2014, calculate:

a.ROA

b.ROCE

c.Operating profit margin

d.Asset turnover.

Round your percentage answers to one decimal place.For example, .1234 = 12.3%.