short question 25

Question 4:- (3 x 5 = 15 Marks)

The following data apply to Omani’s Company:

Total Current Asset	800 (OMR Thousand)	Quick ratio	1.5 Times
Sales	1800 (OMR Thousand)	Current ratio	2 Times
Net Fixed assets	700 (OMR Thousand)	Financia Leverage Multiplier	1.6 Times
Net Profit Margin	8% (OMR Thousand)	Days Sales Outstanding (DSO)	35 days

Calculate the following:-

1.Return on Asset (ROA). And Return on Equity (ROE).

2.Selling Period and Inventory Turnover.

If Omani’s could reduce its DSO from 35 days to 30 days while holding other things constant, how much cash would it generate (Account Receviable)?

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