Solution-Explain the importance of inventory management

Explain the importance of inventory management

Reference no: EM132689490

Note: When converting annual data to daily data or vice versa in these problems, assume there are 365 days per year.

Problem 1: Miranda Tool Company sells to retail hardware stores on credit terms of "net 30". Annual credit sales are $18 million and are spread evenly throughout the year. The company's variable cost ratio is 0.70, and its accounts receivable average $1.9 million. Using this information, determine the following for the company: a. Average daily credit sales b. Average collection period c. Average investment in receivables

Problem 2: Drake Paper Company sells on terms of "net 30". The firm's variable cost ratio is 0.80. a. If annual credit sales are $20 million and its accounts receivable average is 15 days overdue, what is Drake's investment in receivables? b. Suppose that, as the result of a recession, annual credit sales decline by 10 percent to $18 million, and customers delay their payments to an average of 25 days past the due date. What will be Drake's new level of receivables investment?

Problem 3:c. Name and explain two inventory systems.

Reference no: EM132689490

Questions Cloud

French senate is considered as being weakest body : The senate in the united States is cinsidered as being the most powerful body of the Congress whereas the French Senate is considered as being the weakest body

Explain the justification for requiring lessees : Explain the justification for requiring lessees to capitalize certain long-term leases. Do no limit your discussion to the specific criteria for classifying a l

Purchase of treasury shares to the payment of dividends : Explain why the investors might prefer that firms use excess cash to purchase treasury shares rather than pay dividends.

Explain how cyber-attack can cause economic damage : There are a variety of ways that a cyber-attack can cause economic damage. In many cases, attackers try to "penetrate" systems in order to steal technology.

Explain the importance of inventory management : Note: When converting annual data to daily data or vice versa in these problems, assume there are 365 days per year.

Mitigate negative consequences of interest groups : What specifically do you think should be changed to mitigate the negative consequences of interest groups while maintaining the positive impacts

Find equity financing and debt financing : What is the difference between Equity Financing and Debt Financing. Please provide example of both

Describe the andriller tool functionality : Describe the Andriller tool functionality and process used in an examination of a device. Using the Internet, research the web for an article related to the.

Crime and Ethical Standards : How might the criminal justice professional maintain ethical standards when working with diverse populations?

User Account

All Pages

Explain the importance of inventory management

Reference no: EM132689490

Reference no: EM132689490

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