u need to determine the working capital using the cash conversion cycle method. If you have the following information regarding its costs and the economic cycle (of conversion into cash). And if the company has fixed total annual costs of $50,000 and variable costs of $100,000. Consider a year of 360 days. The product requires 12 hours of processing and the company works only one shift a day (8 hours), and the raw material takes 10 days to reach the plant. The product takes 3 days to reach the distributor. In addition, the following information is available: RAW MATERIAL STORAGE PERIOD : 16 days FINISHED GOODS INVENTARY PERIOD : 10 days CREDIT TO DISTRIBUTORS: 60 days
u need to determine the working capital using the cash conversion cycle method. If you have the following information regarding its costs and the economic cycle (of conversion into cash). And if the company has fixed total annual costs of $50,000 and variable costs of $100,000. Consider a year of 360 days. The product requires 12 hours of processing and the company works only one shift a day (8 hours), and the raw material takes 10 days to reach the plant. The product takes 3 days to reach the distributor. In addition, the following information is available: RAW MATERIAL STORAGE PERIOD : 16 days FINISHED GOODS INVENTARY PERIOD : 10 days CREDIT TO DISTRIBUTORS: 60 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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You need to determine the
If you have the following information regarding its costs and the economic cycle (of conversion into cash). And if the company has fixed total annual costs of $50,000 and variable costs of $100,000. Consider a year of 360 days.
The product requires 12 hours of processing and the company works only one shift a day (8 hours), and the raw material takes 10 days to reach the plant.
The product takes 3 days to reach the distributor. In addition, the following information is available:
RAW MATERIAL STORAGE PERIOD : 16 days
FINISHED GOODS INVENTARY PERIOD : 10 days
CREDIT TO DISTRIBUTORS: 60 days
SUPPLIER CREDITS: 45 DAYS
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