The Brenmar Sales Company had a gross profit margin (gross profits/sales) of 25 percent and sales of $9.5 million last year. 74 percent of the firm's sales are on credit, and the remainder is cash sales. Brenmar's current assets equal $1.4 million, its current liabilities equal $295,500 and it has $100.500 in cash plus marketable securities. a. If Brenmars accounts receivable equal $562,800 what is its average collection period? b. If Brenmars reduces its average collection period to 20 days, what will be its new level of accounts receivable?

The Brenmar Sales Company had a gross profit margin (gross profits/sales) of 25 percent and sales of $9.5 million last year. 74 percent of the firm's sales are on credit, and the remainder is cash sales. Brenmar's current assets equal $1.4 million, its current liabilities equal $295,500 and it has $100.500 in cash plus marketable securities. a. If Brenmars accounts receivable equal $562,800 what is its average collection period? b. If Brenmars reduces its average collection period to 20 days, what will be its new level of accounts receivable?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...

See similar textbooks

Similar questions

The Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales of $9.2 million last year. 73 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 $300,700, and it has $109,000 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $562,900, 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 9.3 times. What is the level of Brenmar's inventories?
he Brenmar Sales Company had a gross profit margin (gross profits÷sales) of 34 percent and sales of $8.3 million last year. 79 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.5 million, its current liabilities equal a. If Brenmar's accounts receivable equal $563,000, 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 8.9 times. What is the level of Brenmar's inventories? $303,100, and it has $104,400 in cash plus marketable securities.
Mandesa, Inc has current liabilities of $8 million, current ratio of 2 times inventory turnover of 12 times, average collection period of 30 days, and credit sales of $64million. Calculate the value of cash and marketable securities.
Lynd Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000 and total liabilities of P275,000 representing notes payable. The firm’s operating margin is 16.1%, and it pays a 10% rate of interest on its notes payable. How much is the firm’s times-interest earned?
Aila Company has cash sales of P2,500,000 and net sales of P3,450,000, total assets of P1,240,000 and total liabilities of P275,000 representing notes payable. The firm’s operating margin is 16.1%, and it pays a 10% rate of interest on its notes payable. How much is the firm’s times-interest earned?
Zocco corporation has...Accounting questions
Taft Technologies has the following relationships: Annual sales 1,200,000.00 Current liabilities 375,000.00 Days sales outstanding (DSO) (365-day year) 40 Inventory turnover ratio 4.8 Current ratio 1.2 The company’s current assets consist of cash, inventories, and accounts receivable. How much cash does Taft have on its balance sheet?
Please give me answer general accounting
A firm has sales of $1.6 million, and 25 percent of the sales are for cash. The year-end accounts receivable balance is $175,000.What is the average collection period?
Suppose the 2022 financial statements of 3M Company report net sales of $23.1 billion. Accounts receivable (net) are $3.2 billion at the beginning of the year and $3.25 billion at the end of the year. Compute 3M’s accounts receivable turnover. - Accounts Recievable turnover ratio=? (times) Compute 3M’s average collection period for accounts receivable in days - Average collection period =? (days)
Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's accounts receivable. Make the following assumptions: current year's sales are $55,750,000; current year's cost of goods sold is $25,350,000; sales are expected to rise by 25%, The firm's investment in accounts receivable in the current year is $12,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? $10,320,000 $11,345,000 O $15,750,000 $8,772,000
I need answer of this question