How much can tryu limited decrease accounts receivable

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Problem 1: A company has an operating profit margin of 25%, a net profit margin of 10%, total asset turnover of 1.23, assets of $160,000 and shareholders' equity of $80,000. Calculate the company's net profit.

Problem 2: Tryu Limited has annual credit sales of $820,000, cost of goods sold of $397,000 and an average collection period of 30 days. By how much can Tryu Limited decrease its accounts receivable if it decreases its average collection period to 25 days?

Reference no: EM132963054

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