1. Which of following is NOT a characteristic of a well-functioning secondary market?
A. Liquid.
B. Government regulated.
C. Accurate in its pricing of the traded asset.
2. The Brenmar Sales Company had a gross profit margin (gross profits divided by ÷sales) of 34 percent and sales of $ 9.4 million last year. 76 percent of the firm's sales are on credit, and the remainder are cash sales. Brenmar's current assets equal $1.2 million, its current liabilities equal $297,500 and it has $109,100 in cash plus marketable securities.
a. If Brenmar's accounts receivable equal $563,400, what is its average collection period?
The company's average collection period will be______ days. ?(Round to two decimal places.)
b. If Brenmar reduces its average collection period to 15 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?