Problem:
Industries has sales in 2006 of $40M 20 percent of which were cash. Clovis normally carries 45 days of credit sales in accounts receivable, what are its average accounts receivable balances? (assume a 365 day year)
William Oil Company had a return on stockholders' equity of 18 percent during 2006. Its total asset turnover was 1.0 times, and its equity multiplier was 2.0 times. Calculate the company's net profit margin.