(evaluating liquidity) the tabor sales company had a gross profit margin (gross profits divided by ÷sales) of 30.4 percent and sales of $9.2 million last year. seventy-five percent of thefirm's sales are on credit and the remainder are cash sales. tabor's current assets equal $2.1 million, its current liabilities equal $319,000, and it has $99,000 in cash plus marketable securities.

a. if tabor's accounts receivable are $562,500, what is its average collection period?

b. if tabor reduces its average collection period to 19 days, what will be its new level of accounts receivable?

c. tabor's inventory turnover ratio is 9.5 times. what is the level of tabor's inventories?

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

What do you think: would it be more profitable to own 200 shares of penny’s pickles or 1 share of exxon? why do you think that?