FRESH & FRUITY FOODS, INC
Balance Sheet
As of New Year's Eve, 2008
Assets:
Cash $3,560
Accounts receivable 209,686
Inventory 79,557
Total current assets $292,803
Property, plant and equipment, net 11,430
Total assets $304,233
Liabilities and equity:
Accounts payable $180,633
Notes payable (bank loans) 0
Total current liabilities $180,633
Long-term debt 0
Total liabilities 180,633
Common stock 13,600
Additional paid-in capital 83,000
Retained earnings 27,000
Total equity 123,600
Total liabilities and equity $304,233
Selected ratios
Profit Margin 4.29%
Return on equity 40.96%
Inventory turnover 14.82
Receivables turnover 5.62
Average payment period 67

Assume Alice Plummers first initiative to offer a 10 percent discount was implemented, and the companys average collection period dropped to 32 days If net sales per day remained the same, as Alice expects, what would be the new accounts receivable balance How much cash was freed up by the reduction in accounts receivable What is the new accounts payable balance if the money is used to pay off suppliers

Answer rating: 100% (QA)

Accounts receivable Accounts receivable represents the ... View the full answer