What will be its new level of accounts receivable

Assignment Help Financial Management

Reference no: EM131625378

(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits divided by ÷ sales) of 30.2 percent and sales of $9.9 million last year. Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor's current assets equal $2.6 million, its current liabilities equal $296, 000 and it has $104,000 in cash plus marketable securities.

a. If Tabor's accounts receivable are $562,500 what is its average collection period (Round to two decimal places) Please wait...

b. If Tabor reduces its average collection period to 19 days, what will be its new level of accounts receivable?

c. Tabor's inventory turnover ratio is 9.3 times. What is the level of Tabor's inventories?

(Market-value ratios) Garret Industries has a price/earnings ratio of 18.92.

a. Garret's earnings per share is $1.57,what is the price per share of Garret's stock?

b. Using the price per share you found in part a, determine the price/book ratio if Garret's equity book value per share is $ $9.86.(Round to the nearest cent.)

Reference no: EM131625378

Questions Cloud

The stock and the put option-from the current market price : Now graph your payout of your total position - the stock and the put option -- from the current market price.

Calculate liabilities-to-assets ratio : calculate profit margin. Calculate Liabilities-to-assets ratio

Compute the ratios-quick ratio and debt/equity ratio : Use the income statement and balance sheet that you created on Green Dating Service, Inc. to compute the following ratios. Quick Ratio and Debt/Equity Ratio.

Who loses when a firm becomes too big to fail : Who benefts and who loses when a firm becomes too big to fail?

What will be its new level of accounts receivable : If Tabor's accounts receivable are $562,500 what is its average collection period? what will be its new level of accounts receivable?

Asia pacific alone next round to break even on the product : Determine how many units (000's) of product Able would need to be sold in Asia Pacific alone next round to break even on the product.

Difference between plant purchase and bond issue : Cash was pulled from Retained Earnings to cover the $4,200,000 difference between plant purchase and bond issue.

Organization products could fit potential customers needs : Yvonne and Garret are looking at information about how their organization's products could fit potential customers' needs.

Company primary account representative : As an owner of a small company your role doubles as the company's primary account representative.

User Account

All Pages