PROBLEM 3: Given the information in the table below, compute the following: Sales revenue (all credit) $350.000 Net Income $ 50,000 Total assets (beg balance) $218.000 Accounts receivable (begin) $26,500 Total assets (end balance) $230,000 Accounts receivable (end) $28,000 Cost of goods sold (COGS) S180,000 Allowance for D/A (beg) $1,500 Sales return $ 50,000 Allowance for D/A (end) $1,800 Sales discount $ 20,000 Average number of shares O/S 7,500.5 million a. Net Sales: (Revenue - Sales Return - Sales Discount) . Gross profit: (Net Sales - COGS) c. Gross profit %: (Gross Profit/Net Sales) d. Net Profit Margin %: (Net Income /Net Sales) Accounts Receivable Turnover: (Net Sales (credit) Average A/R (net of Allow DIA) d. Net Profit Margin %: (Net Income / Net Sales): e Accounts Receivable Turnover: (Net Sales (credit) / Average A/R (net of Allow D/A). f Average number of days in A/R: (365/A/R Turnover) g. Earnings per Share: Net Income / Average Shares Outstanding h. Total Asset Turnover: Net Sales Average Total Assets Return on Assets (ROA): Net Income Average Total Assets Note: You will also need to know how to calculate operating income, income before taxes and niet income Refer back to exercises in Chapters 3 and 5