Chapter 13, Problem 2E

To determine

Day’s Sales Uncollected:

Day’s sales uncollected imply how much days a company takes to collect its accounts receivables.

Accounts Receivable Turnover:

Ability of a company to efficiently issue credits to its customers or vendors and timely collection of funds from them is shown by accounts receivable turnover.

Working Capital:

Availability of money for day to day activities or operations is known as working capital.

Return on Total Assets:

Measurement of a company’s earnings against the amount of its net assets is known as return on total assets.

Total assets Turnover:

Measurement of a company’s revenue or sales to its value of assets is known as total assets turnover.

Profit Margin:

Profit margin is a state of revenue left after deduction of all costs or expenses from the total earnings. Cost includes depreciation, interest and tax as well.

To identify: The best metrics which complete given questions 1 to 3.