(Efficiency analysis) The Brenmar Sales Company had a gross profit margin? (gross profits÷?sales) of 35 percent and sales of $8.6 million last year. 74 percent of the? firm's sales are on? credit, and the remainder are cash sales. ? Brenmar's current assets equal $1.9 ?million, its current liabilities equal $301,200?, and it has $105,000 in cash plus marketable securities.

a. If? Brenmar's accounts receivable equal $562,800?, what is its average collection? period?

b. If Brenmar reduces its average collection period to 20 ?days, what will be its new level of accounts? receivable?

c. ?Brenmar's inventory turnover ratio is 9.6 times. What is the level of? Brenmar's inventories?

a. If? Brenmar's accounts receivable equal $562,800?, what is its average collection? period?

The? company's average collection period will be days. ?(Round to two decimal? places.)

If Brenmar reduces its averge collection period to 25 days, what will be its new level of accounts receiveable? The new level of accounts recieveable will be? _ (Round to the nearest dollar.)

Brenmar's inventory turnover ratio is 8.9 times. What is the level of Brenmar's inventories?

Brenmar's inventories will be $_________ (Round to the nearest dollar.)

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