1- Last year Vaughn Corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. The firm's total-debt-to-total-assets ratio was 42.5%. Based on the Du Pont equation, what was Vaughn's ROE?

2- Data on Shick Inc. for 2008 are shown below, along with the days sales outstanding of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its receivables enough to reduce its DSO to the benchmarks’ average. If this were done, by how much would receivables decline? Use a 365-day year.  

Sales                                          $110,000

Accounts receivable                     $16,000

Days sales outstanding (DSO)                    53.09

Benchmark days sales outstanding (DSO)           20.00

3- Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?

Annual sales = $45,000

Annual cost of goods sold = $30,000

Inventory = $4,500

Accounts receivable = $1,800

Accounts payable = $2,500