Question: Your average collection period in days is going down from 10 days to 5 days, i.e. you are collecting $ of sales faster from consumers.

Your average collection period in days is going down from 10 days to 5 days, i.e. you are collecting $ of sales faster from consumers. What happens to your accounts receivable? a. They decline by approximately 30% b. They decline by approximately 50% c. They decline by approximately 20% Question 14 - Balance Sheet Analysis Consider the following balance sheet, where all numbers are muntad in millions of dollars What is the working capital? a. $150M b. $210M c. $230M Question 15 - Baiance Sheet Analysis (continued) What is the total shareholder equity? a. $230M b. $210M c. $280M Question 16 - ROE (continued) Using the balance sheet of question 14, If the net income of the firm is $10M, what is the Return on Equity of the firm? a. 4.3% b. 3.6% c. 1%

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