What is its average collection? period

Assignment Help Finance Basics
Reference no: EM132379745

The Brenmar Sales Company had a gross profit margin? (gross profits÷?sales) of 32 percent and sales of $8.3 million last year. 72 percent 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 $299,500?, and it has $101,100 in cash plus marketable securities.

a. If? Brenmar's accounts receivable equal $562,900?, what is its average collection? period?

b. If Brenmar reduces its average collection period to 25 ?days, what will be its new level of accounts? receivable?

c. ?Brenmar's inventory turnover ratio is 9.5 times. What is the level of? Brenmar's inventories?

Reference no: EM132379745

Questions Cloud

Objective of managing operating exposure : What is the objective of managing operating exposure?
ACC302 Corporate Finance Assignment problem : ACC302 Corporate Finance Assignment help and solution, Bachelor of Business, Stotts College, Assessment help - report and analysis of the financial performance
You are currently investing your money in a bank account : You are currently investing your money in a bank account which has a nominal annual rate of 8 percent, compounded monthly.
What is the current book value of assets : Delta Company purchased some fixed assets four years ago at a cost of $248,000. It no longer needs these assets, so it is going to sell them today
What is its average collection? period : If? Brenmar's accounts receivable equal $562,900?, what is its average collection? period?
What is the? firm debt? ratio : Dearborn Supplies has total sales of $204 ?million, assets of $93 ?million, a return on equity of 29 ?percent, and a net profit margin of 7.8 percent.
What is the maximum level of accounts receivable : What is the maximum level of accounts receivable that ALei can carry and have a 35?-day average collection? period?
BM133 Introduction to Small Business Management Question : BM133 Introduction to Small Business Management assignment help and solutions, Computer Systems Institute - Does small business play a significant role.
Net operating income and net income : a. Compute the? firm's 2016 net operating income and net income.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd