The Tabor Sales Company had a gross profit margin (gross profits = sales) of 30 percent and sales of $9 million last year. Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor current assets equal $1.5 million, its current liabilities equal $300.000, and it has $100,000 in cash plus marketable securities. Assume 365 days in a year. a. If Tabor's accounts receivable are $562,500, what is its average collection period? b. If Tabor reduces its days in receivable (average collection period) to 20 days, what will be its new level of accounts receivable? c. Tabor's inventory turnover ratio is 9 times. What is the level of Tabor's inventories? Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. DATA Gross profit margin 30% Sales $9.000.000 Credit sales as percentage of total sales 75% Current assets $1,500,000 Current liabilities $300,000 Cash & marketable securities $100,000 Accounts receivable $562,500 Average collection period (after reductio 20 Inventory turnover 9 SOLUTION a. If Tabor's accounts receivable are $562,500, what is its average collection period? Average collection period b. If Tabor reduces its days in receivable (average collection period) to 20 days, what will be its new level of accounts receivable? Accounts receivable c. Tabor's inventory turnover ratio is 9 times. What is the level of Tabor's inventories? Inventory Requirements: 1. Start Excel. Download and open the workbook named: Keown_Martin_Petty_Problem_4-8_Start Important note: All calculations must be shown using cell references. Do NOT enter numerical values in the cells. 2. In cell B19, calculate the average collection period. (1 point) 3. In cell B22, calculate the accounts receivable if Tabor reduces its days in receivable. (1 point) 4. In cell B25, calculate the inventory. (1 point) 5. Save the workbook. Close the workbook and then exit Excel. Submit the workbook as directed