In: Finance
Day's sales in receivables = 365 days / receivables turnover
20 = 365 days / Receivables turnover
Receivables turnover = 365 / 20
Receivables turnover = 18.25 times
Receivables turnover = Sales / Accounts receivables
18.25 = Sales / $2,920
Sales = $53,290
Asset turnover ratio = Sales / Total assets
Asset turnover ratio = $53,290 / $73,000
Asset turnover ratio = 0.73 times
Net income = 0.06 * $53,290 = $3,197.40
ROA = Net income / Total assets
ROA = $3,197.40 / $73,000
ROA = 0.0438 or 4.38%