Question

In: Finance

(Efficiency analysis) The Brenmar Sales Company had a gross profit margin​ (gross profits÷​sales) of 34 percent...

(Efficiency analysis) The Brenmar Sales Company had a gross profit margin​ (gross profits÷​sales) of 34 percent and sales of $9.3 million last year. 76 percent of the​ firm's sales are on​ credit, and the remainder are cash sales. ​ Brenmar's current assets equal $1.7 million, its current liabilities equal $299,200​, and it has $102,800 in cash plus marketable securities. a. If​ Brenmar's accounts receivable equal $562,300​, what is its average collection​ period?

b. If Brenmar reduces its average collection period to 25 days, what will be its new level of accounts​ receivable?

c. Brenmar's inventory turnover ratio is 9.2 times. What is the level of​ Brenmar's inventories?

Solutions

Expert Solution


Related Solutions

​(Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profits divided by ​sales)...
​(Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profits divided by ​sales) of 25 percent and sales of $ 9.2 million last year.  73 percent of the​ firm's sales are on​ credit, and the remainder are cash sales. ​ Brenmar's current assets equal $ 1.7 ​million, its current liabilities equal $ 301 comma 400​, and it has $ 100 comma 000 in cash plus marketable securities. a. If​ Brenmar's accounts receivable equal $ 562 comma 000​,...
(Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profits divided by÷sales) of...
(Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profits divided by÷sales) of 27 percent and sales of $8.4 million last year. 78 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal 1.8 million, its current liabilities equal $297,500, and it has $109,000 in cash marketable securities. A. If​ Brenmar's accounts receivable equal $562,500, what is its average collection period? b. If Brenmar reduces its average collection period...
​(Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profitsdivided by​sales) of 32...
​(Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profitsdivided by​sales) of 32 percent and sales of $ 9.4 million last year.  74 percent of the​ firm's sales are on​ credit, and the remainder are cash sales. ​ Brenmar's current assets equal $ 1.4 ​million, its current liabilities equal $ 300 comma 900​, and it has $ 108 comma 200 in cash plus marketable securities. a. If​ Brenmar's accounts receivable equal $ 562 comma 100​, what is...
Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profitsdivided by÷​sales) Of 27...
Efficiency analysis)  The Brenmar Sales Company had a gross profit margin​ (gross profitsdivided by÷​sales) Of 27 percent and sales of 9.1 million last year.  71percent of the​ firm's sales are on​ credit, and the remainder are cash sales. ​Brenmar's current assets equal $1.5 ​million, its current liabilities equal $ 297,700 and it has $ 107,200 in cash plus marketable securities. a. If​ Brenmar's accounts receivable equal $562,500​, what is its average collection​ period? b. If Brenmar reduces its average collection...
The Brenmar Sales Company had a gross profit margin (gross profits divided by ÷ sales) of...
The Brenmar Sales Company had a gross profit margin (gross profits divided by ÷ sales) of 26 percent and sales of $9.3 million last year. 79 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.8 million, its current liabilities equal $ 303,500, and it has $104,100 in cash plus marketable securities. a. If Brenmar's accounts receivable equal $563,000 , what is its average collection period? b. If Brenmar reduces its...
The Brenmar Sales Company had a gross profit margin (gross profits /  sales) of 28% and sales...
The Brenmar Sales Company had a gross profit margin (gross profits /  sales) of 28% and sales of $8.3 million last year. 73% of the firm's sales are on credit, and the remainder are cash sales. Bertram's current assets equal $1.4 million, its current liabilities equal $299,999, and it has $108,000 in cash plus marketable securities. A. If Brenmar's accounts receivable equal $563,100, what is its average collection period? B. If Brenmar reduces its average collection period to 20 days, what...
The Brenmar Sales Company had a gross profit margin (gross profits divided by sales) of 31%...
The Brenmar Sales Company had a gross profit margin (gross profits divided by sales) of 31% and sales of $9.8 million last year. 80% of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.5 million, it's current liabilities equal $303,000 and it has $103,100 in cash plus marketable securities. Please answer the following, a. If Brenmar's accounts receivable equal $561,800 what is the average collection period? b. If Brenmar reduces its average...
The Brenmar Sales Company had a gross profit margin (gross profit/sales) of 28% and sales of...
The Brenmar Sales Company had a gross profit margin (gross profit/sales) of 28% and sales of $8.6 million last year. 70% of the firm’s sales are in credit, and the remainder are cash sales. Brenmar’s current assets equal $1.4 million, its current liabilities equal $299,000, and it has $106,000 in cash plus marketable securities. A. If Brenmar’s accounts receivable equal $562,600, what is its average collection period? B. If Brenmar reduces its average collection period is 25 days, what will...
HBM, Inc. had sales of $9 million and a net profit margin of 10 percent in...
HBM, Inc. had sales of $9 million and a net profit margin of 10 percent in 20X0. Management expects sales to grow to $10.8 million and $12.6 million in 20X1 and 20X2, respectively. Management wants to know if additional funds will be necessary to finance this anticipated growth. Currently, the firm is not operating at full capacity and should be able to sustain a 25 percent increase in sales. However, further increases in sales will require $3 million in plant...
Profit and Loss Statement 2018 Revenue 34,290 percent of growth 0.0% Gross Profit 34,290 Gross Margin...
Profit and Loss Statement 2018 Revenue 34,290 percent of growth 0.0% Gross Profit 34,290 Gross Margin 100% SGA Costs (2,500) EBITDA 31,790 EBITDA Margin 92.7% Depreciation (7,500) % of Sales -21.9% EBIT 24,290 EBIT Margin 70.8% Interest (2,500) % of Sales -7.3% EBIT 21,790 EBIT Margin 63.5% Net Income 21,790 Net Income Margin 63.5% Balance Sheet 2017 2018 Cash 9,000 12,000 Inventory 0 0 A/R    0 3,179 Current Assets    9,000 15,179 Fixed Assets 747,300 763,800 Total Assets   ...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT