What is the firm net profit margin

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Q1. ABC Company whose gross sales amounted to P1,200,000 sold on terms of 3/10, net 30. The collections manager estimated that 30% of the customers pay on the 10th day and take discounts; 40% on the 30th day; and the remaining 30% pay, on the average, 40 days after the purchase. If management would toughen on its collection policy and require that all non-discount customers pay on the 30th day, how much would be the receivables balance?

Q2. ABC Company has total assets turnover ratio of 1.90 and a return on total assets of 7.20%. What is the firm's net profit margin?

Reference no: EM133178886

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