Response to the following questions:
1. What is the DuPont formula?
2. A company that grants terms of n/30 on all sales has a yearly accounts receivable turnover, based on monthly averages, of 6. Is this a satisfactory turnover? Discuss.
3. What does an increase in the number of days' sales in receivables ordinarily indicate about the credit and collection policy of the firm?
4. a. Why is it advantageous to have a high inventory turnover?
b. Is it possible for the inventory turnover to be too high? Discuss