What is its average collection? period

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(Efficiency analysis)

The Brenmar Sales Company had a gross profit margin? (gross profits divided by ÷?sales) of 34 percent and sales of $9.2 million last year. 79 percent of the? firm's sales are on? credit, and the remainder are cash sales. ? Brenmar's current assets equal $1.2million, its current liabilities equal $ 302 comma 900$302,900?, and it has $ 108, 900 in cash plus marketable securities.

a. If? Brenmar's accounts receivable equal $562,700?, what is its average collection? period?

b. If Brenmar reduces its average collection period to 2020 ?days, what will be its new level of accounts? receivable?

c. ?Brenmar's inventory turnover ratio is 8.9times. What is the level of? Brenmar's inventories?

Reference no: EM132408172

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