Solution-Determine the average investment in accounts

Determine the average investment in accounts receivable

Assignment Help Finance Basics

Reference no: EM131201924

Pretty Lady Cosmetic Products has an average production process time of forty days. Finished goods are kept on hand for an average of fifteen days before they are sold. Accounts receivable are outstanding an average of thirty-five days, and the firm receives forty days of credit on its purchases from suppliers.

a. Estimate the average length of the firm's short-term operating cycle. How often would the cycle turn over in a year?

b. Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?

Reference no: EM131201924

Questions Cloud

Determine the mass flow rate of air in the gas turbine cycle : Using the thermodynamic properties of air and steam from the Tables, determine; the mass flow rate of air in the gas turbine cycle if the steam generation rate is 30 kg/s, and the rate of total heat input

What is the smallest wage you should accept : A class of 100 students is participating in an auction to see who gets a large jar of quarters. Each student has an unbiased estimate of the total value of the coins. If these estimates are drawn from the interval (0, C), where C is not known, and..

Explain market structures in different contexts : Demonstrate understanding of how a firm uses any specific business strategy using different parts of the value chain and of the risks entailed, and design a blue ocean strategy for a firm using four actions and value canvas tools.

Outline the factors that an auditor would have to consider : Outline the factors that an auditor would have to consider when determining the level of acceptable audit risk they would be willing to take when conducting an audit.

Determine the average investment in accounts receivable : Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?

Why every allocation is pareto efficient : The peanuts are the only thing to eat. In this economy with two people, one commodity and no production represent that possible allocations in a diagram, and explain why every allocation is Pareto efficient. Is every allocation fair?

Components in the aim planning process : Describe each of the three components in the AIM planning process for business messages: audience analysis, idea development, and message structuring.

Does a market-based economic system need to be monitored : Currently Australian consumers are paying off their debts and not spending. Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function.Conversely what would happe..

What is the project npv : All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $68,463 and the cost of capital is 6% What is the project's NPV if the tax rate is 38%?

User Account

All Pages

Determine the average investment in accounts receivable

Reference no: EM131201924

Reference no: EM131201924

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT