User Account

All Pages

Determine the number of orders to be placed each year

Assignment Help Accounting Basics
Reference no: EM132618280

Questions -

Q1. Cool Kids annual sales amount to 300 000 units. Orders are placed in multiples of 100 units. The purchasing price is R1 per unit. The carrying cost of inventory equals 25% of the purchase price of goods. The ordering cost is R20 per order. Three days are required for delivery. The desired safety stock for the firm is 10 000 units. This amount is on hand.

Required -

Calculate the EOQ for Cool Kids.

Determine the number of orders to be placed each year. (Assume a 360 day year).

Determine the re-order point for inventory.

Q2. The following data was extracted from the company statements of Up Jean Ltd, a clothing retail outlet for the year ended 31 March 2019:

Credit purchases R330 000

Credit sales R590 000

Opening stock R87 500

Closing stock R75 000

Debtors R98 500

Creditors R41 000

Required -

Calculate the length of the working capital cycle by making use of the ratios, days stock on hand (inventory); debtors collection period (receivables) and creditors (payables) settlement period.

Reference no: EM132618280

Questions Cloud

What does deegan mean by this statement : What does Deegan mean by this statement? Do you agree with Deegan, or do you think conceptual frameworks exist for other reasons? Justify your position
Develop statement of business ethics code of ethics : Develop a statement of business ethics, "code of ethics," for your startup company.
Major forms of business organizations : What are advantages and disadvantages of each of the major forms of business organizations (sole proprietorship, partnership, and corporation)?
What is agency relationship : What is agency relationship? In relation to agency relationship, agency problems, and agency costs, why is corporate governance important?
Determine the number of orders to be placed each year : Determine the number of orders to be placed each year. (Assume a 360 day year). Determine the re-order point for inventory
What is the primary goal of firms and managers : What is the primary goal of firms and managers? Is profit maximization the primary goal of firms? Why or why not?
Testing for cointegration and modelling cointegrated systems : Compare and contrast the Engle-Granger and Johansen methodologies for testing for cointegration and modelling cointegrated systems.
Evaluating trends and predicting the business environment : You believe are important for organizations to consider when evaluating trends and predicting the business environment in future years.
Afn equation to forecast broussard additional funds : Broussard Skateboard's sales are expected to increase by 20% from $7.4 million in 2019 to $8.88 million in 2020.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd