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?(Evaluating liquidity?) The Tabor Sales Company had a gross profit margin? (gross profits divided b

​(Evaluating liquidity​) The Tabor Sales Company had a gross profit margin​ (gross profits divided by ​sales) of 30.0 percent and sales of ​$9.0 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 ​$1.5 ​million, its current liabilities equal ​$300 comma 000​, and it has ​$100 comma 000 in cash plus marketable securities.

a. If​ Tabor's accounts receivable are ​$562 comma 500​, what is its average collection​ period?

b. If Tabor reduces its average collection period to 20 ​days, what will be its new level of accounts​ receivable?

c. ​Tabor's inventory turnover ratio is 9.0 times. What is the level of​ Tabor's inventories?

Apr 04 2020 View more View Less

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