Answered step by step
Verified Expert Solution
Question
1 Approved Answer
if you could put the answers next to the letter thanks!! (Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits +
if you could put the answers next to the letter thanks!!
(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits + sales) of 30.1 percent and sales of $9.7 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 $2.1 million, its current liabilities equal $290,000, and it has $99,000 in cash plus marketable securities. a. If Tabor's accounts recelvable are $562,500, what is its average collection period? b. If Tabor reduces its average collection period to 18 days, what will be its new level of accounts receivable? c. Tabor's inventory tumover ratio is 9.2 times. What is the level of Tabor's inventories? a. If Tabor's accounts receivable are $562,500, its average collection period is days. (Round to two decimal places.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started