The Brenmar sales company has a gross profit margin (gross profits divided by sales) of 27% and sales of $8.8 million last year. 74% of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.7 million, its current liabilities equal $303,800, and it has $105,800 in cash plus marketable securities.
a. If Brenmar's accounts receivable equal $563,100, what is its average collection period?
The companies average collection period will be____days.
b. If Brenmar reduces its average collection period to 15 days, what will be its new level of accounts receivable?
The new level of accounts receivable will be $______.
c. Brenmar's inventory turnover rate is 9.9 times. What is the level of Brenmar's inventories?
Brenmar's inventories will be $______.