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Show transcribed image text Efficiency analysis The Brenmar Sales Company had a gross profit margin gross profits sales of 31 percent and sales of $84 million last year 79 percent of the firm

Show transcribed image text (Efficiency analysis) The Brenmar Sales Company had a gross profit margin (gross profits sales) of 31 percent and sales of $8.4 million last year. 79 percent of the firm?s sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.2 million, its current liabilities equal $299,700, and it has $108,900 in cash plus marketable securities. a. If Brenmar?s accounts receivable equal $561,600, 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 8.5 times. What is the level of Brenmar?s inventories?

 

May 06 2020 View more View Less

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