1. TCBW last year had an average collection period (days sales outstanding) of 29 days based on accounts receivable of $530,000. All of the firm's sales are made on credit. The firm expects sales this year to be the same as last year. However, the company has begun a new credit policy that should lower the average collection period to 22 days. If the new average collection period is attained, what will the firm's accounts receivable balance equal? (Round your answer to zero decimal places.)
$370,306
$530,000
$402,069
$485,224
$582,576
2. Land Land Land, Inc. has a total asset turnover ratio of 2.0. The average total asset turnover ratio for the firm's industry is 2.5. Based on this information you know that:
LLL has relatively more debt than the average firm in the industry.
LLL has relatively less debt than the average firm in the industry.
LLL more efficiently utilizes its assets than the average firm in the industry.
LLL less efficiently utilizes its assets than the average firm in the industry.