Calculate net cash flow and cumulative net cash flow

Assignment Help Management Theories

Reference no: EM13967788

1. Consider the level production plan for Pennington Cabinets shown in Table 13.5. Perform a cash flow analy- sis for this production plan, using the cash flow analysis in Example 13.8 as a guide. Assume that each cabinet set sold generates a cash inflow of $2800, while each unit produced using regular time generates a cash outflow of Each unit sells for $500. Regular production and over- time production costs are $350 and $450 per unit, respec- tively. The cost to hold a unit in inventory for one month is $10.

a. Develop a cash flow analysis for this problem. Be sure to calculate net cash flow and cumulative net cash flow for each month.

b. Why do the net cash flows for April and May look so much better than those for the other months? What are the implications for building up and draining down inventories under a level production plan?

Reference no: EM13967788

Questions Cloud

Describe the divinity role within the myth : Identify the role in the title of your table. Select two myths, each from a different culture, in which the divine role appears. Identify the divinity names and cultures in columns A and B

Calculate the restocking level : The standard deviation of demand during this same 13- day period is 17 tins. Calculate the restocking level. Assume the desired service level is 90% percent.

How do prices react in the long run to an increase in money : Money is a dominated asset. Derive and explain an expression in support of this statement.

Introduce the case management practices mcdonalds case : Introduce the Case management practices mcdonalds case. he case should be approached and written in a "Case Analysis" format.

Calculate net cash flow and cumulative net cash flow : Develop a cash flow analysis for this problem. Be sure to calculate net cash flow and cumulative net cash flow for each month. Why do the net cash flows for April and May look so much better than those for the other months? What are the implication..

What does this have to do with our study of endogenous : What does this have to do with our study of endogenous growth? Can you relate Phelps's statement to your answer in 1?

Write a character-analysis essay : Write a character-analysis essay in which you analyze one major or minor character from any short story. What "type" of character are you analyzing

Calculate the subtransient fault current, generator current : Assume that a fault occurs on the high-voltage side of transformer T2 in the power system shown in Figure P13-2. Make the assumption that the generator is operating at rated voltage, and that the power system is initially unloaded. Calcu..

Discuss the story and perspectives of this game : Observing, communicating, and participating in a virtual space is what we call cyber-ethnography. The researcher enters into an online environment to explore the communication, culture, and experiences that take place. Discuss the story and perspe..

User Account

All Pages