(Evaluating liquidity) The Tabor Sales Company had a gross profit margin (gross profits divided by sales) of 30.0 percent and sales of $9.0 million last year. Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor's current assets equal $1.5 million, its current liabilities equal $300 comma 000, and it has $100 comma 000 in cash plus marketable securities.
a. If Tabor's accounts receivable are $562 comma 500, what is its average collection period?
b. If Tabor reduces its average collection period to 20 days, what will be its new level of accounts receivable?
c. Tabor's inventory turnover ratio is 9.0 times. What is the level of Tabor's inventories?