Brenmar inventories-companies average collection period

Assignment Help Financial Management

Reference no: EM131826475

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 $______.

Reference no: EM131826475

Questions Cloud

What is the philosophy potential for variability : What is the philosophy's potential for variability? In other words, can the philosophy be applied to both exempt and non-exempt employees? Explain fully.

After the change in capital structure and indicate changes : Calculate the EPS before AND after the change in capital structure and indicate changes in EPS.

Discuss body language that can impact peoples perceptions : Discuss body language and actions that can impact people's perceptions of service by non-verbal attributes. How do customers evaluate body language of employees

Considering investing in property : What is the annual growth rate in operating cash flows for each building during the first nine years? How much is the property worth?

Brenmar inventories-companies average collection period : If Brenmar's accounts receivable equal $563,100, what is its average collection period? What is the level of Brenmar's inventories?

What would be the broader ramifications for accounting : What are the shortfalls of the current definition for liabilities when applied to potentially negative environmental situations

Post the journal entries directly to the ledger accounts : Grete Rodewald formed a dog grooming and training business called Grete Kanines on September 1, 2017. Post the journal entries directly to the ledger accounts

Difference between training and career development : What is the difference between training and career development? Of these two concepts, which is more likely to increase retention in an organization? Why?

What is the annual growth rate in operating cash flows : What is the annual growth rate in operating cash flows for each building during the first nine years?

User Account

All Pages