Problem 3.5 Phoenix Aviation Company had a gross profit margin of 40 percent and sales of $25 million last year. 72 percent of the firm's sales are on credit and the remainder are cash sales. Phoenix's current assets equal $2 million and its current liabilities equal $500,000. Assume a 360-day year. a. If Phoenix's accounts receivable is $1,200,000, what is its average collection period? ACP= Accounts Receivable/Average Daily Credit Sales $1,200,000/[(25,000,000*.72)/360] ACP= 24.84 b. If Phoenix decreases its average collection period to 20 days, what will be its new level of accounts receivable? c. Phoenix's inventory turnover ratio is eight times. What is the level of Phoenix's inventories