What is the total asset turnover ratio of the firm


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Balance Sheet

Cash & M/S        30,000    Accruals                 20,000
Receivables       70,000     Accounts Payable    60,000
Inventories      120,000     Notes Payable         80,000
Fixed Assets    480,000      L-T Liabilities         140,000
Total Assets     700,000     Common Equity     400,000
Total                700,000

Annual Sales = $1,400,000
Net Income = $63,000
Cost of Goods Sold = $960,000
Number of Shares Outstanding = 30,000

1. What is the total asset turnover ratio of the firm?

2. What is the debt ratio of the firm?

3. What is the days sales outstanding (DSO) of the firm? (Use a 360-day year.)

4. What is the current ratio of the firm?

5. What is the profit margin of the firm?

6. What is the return on equity?

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