The Rainbow Company has net income of $132,500. There are currently 29.70 days' sales in receivables. Total
Question:
The Rainbow Company has net income of $132,500. There are currently 29.70 days' sales in receivables. Total assets are $820,000, total receivables are $138,600, and the debt-equity ratio is 0.60. What is the company's profit margin? Its total asset turnover? Its ROE?
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To calculate the profit margin we first need to calculate the sales Using the days sal...View the full answer
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Related Book For 
Essentials Of Corporate Finance
ISBN: 9780073405131
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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