Calculate the average net working capital financing

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Eddie's Surfboard Products has an average production process time of 25 days. Finished goods are kept on hand for an average of 20 days before they are sold. Accounts receivable are outstanding an average of 30 days, and the firm receives 40 days trade credit on its purchases from suppliers. Assuming the average inventory investment is $112,500, average receivables investment is $96,000, and average accounts payable balance is $100,000. Calculate the average net working capital financing required.

Reference no: EM132499114

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Calculate the average net working capital financing : Eddie's Surfboard Products has an average production process time of 25 days. Finished goods are kept on hand for an average of 20 days before they are sold.
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