Millers Metalworks, Inc. has a total asset turnover of 2.5 and a net profit margin of 3.5%. The total debt ratio for the firm is 50%

Millers Metalworks, Inc. has a total asset turnover of 2.5 and a net profit margin of 3.5%. The total debt ratio for the firm is 50%. Calculate Millers's return on equity.

A) 17.5%

B) 19.5%

C) 21.5%

D) 23.5%

Smart and Smiley Incorporated has an average collection period of 74 days. What is the accounts receivable turnover ratio for Smart and Smiley?

A) 4.93

B) 2.47

C) 2.66

D) 1.68

Billing's Pit Corporation has an accounts receivable turnover ratio of 3.4. What is Billing's Pit Corporation's average collection period?

A) 107 days

B) 102 days

C) 73 days

D) 55 days

Which of the following statements is true?

A) As a general rule, management would want to reduce the firm's average collection period.

B) As a general rule, management would want to reduce the firm's accounts receivable turnover ratio.

C) As a general rule, management would want to increase the firm's average collection period.

D) As a general rule, a firm is not financially affected by the amount of time required to collect its accounts receivable.

Snype, Inc. has an accounts receivable turnover ratio of 7.3. Stork Company has an accounts receivable turnover ratio of 5.0. Which of the following statements is correct?

A) Snype's average collection period is less than Stork's.

B) Stork's average collection period is less than Snype's.

C) Snype has a lower accounts receivable account on average than does Stork Company.

D) Stork Company has (on average) a lower accounts receivable account than does Snype.