Gater Products currently has $2,000,000 in accounts receivable and its days sales outstanding (AR/ (Sales/365)) is...

  

Transcribed Image Text:

Gater Products currently has $2,000,000 in accounts receivable and its days sales outstanding (AR/ (Sales/365)) is 40 days. If accounts receivable represents 20% of the firm's current assets and Gater has $6,000,000 in net fixed assets, what is Gater's total assets turnover? Assume that a firm has sales of $11,700,000, total assets of $4,500,000, total common equity of $1,635,000, and an ROE of 37.4985 percent. Given this information, and using the DuPont equation, determine the profit margin for this firm. Gater Products currently has $2,000,000 in accounts receivable and its days sales outstanding (AR/ (Sales/365)) is 40 days. If accounts receivable represents 20% of the firm's current assets and Gater has $6,000,000 in net fixed assets, what is Gater's total assets turnover? Assume that a firm has sales of $11,700,000, total assets of $4,500,000, total common equity of $1,635,000, and an ROE of 37.4985 percent. Given this information, and using the DuPont equation, determine the profit margin for this firm.

Answer rating: 100% (QA)

Lets break down the first part of your question step by step 1 Calculate Sales Days Sales Outstandin... View the full answer