(Evaluating

liquidity)

The Tabor Sales Company had a gross profit margin (gross

profitssales)

of

30.7

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

$2.9

million, its current liabilities equal

$285,000,

and it has

$105,000

in cash plus marketable securities.a. If Tabor's accounts receivable are

$562,500,

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

9.5

times. What is the level of Tabor's inventories?

a. If Tabor's accounts receivable are

$562,500,

its average collection period is

nothing

days.(Round to two decimal places.)b. If Tabor reduces its average collection period to

20

days, its new level of accounts receivable will be

$nothing.

(Round to the nearest dollar.)c. If Tabor's inventory turnover ratio is

9.5

times, the level of Tabor's inventories is

$nothing.

(Round to the nearest dollar.)