Considering investing dakota security services

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Reference no: EM131852948

You are considering investing Dakota's security services. You have been able to locate the following information on the firm. Total assets are $32 million, accounts recievable are $4.4 million, ACP is 25 days, net income is $4.66 million, and debt to equity is 1.2 times. All sales are on credit. The change is expected to increase credit sales by 5 percent. Any change in accounts receivable will be offset with a change in debt. No other balance sheet changes are expected. Dakot's profit margin will remain unchanged. How will this change in accounts receivable policy affect dakota''s net income, total asset turnover, equity multiplier, ROA, and ROE?

Reference no: EM131852948

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