1. The Manana Corporation had asalers of $58.7 million this year. Its accounts receivable balance averaged $3.6 million. How long on average, does it take the firm to collect on its sales? (Hint: Using 365 days for a year.)
The collection period is ____days (Round to one decimal place.)
2. All else held constant, which one of the following will decrease if a firm increases its net income?
Return on assets
Price-earnings ratio
Return on equity
Price-sales ratio
Profit margin