Solution-Hat average level of inventory should the firm

Hat average level of inventory should the firm maintain

Reference no: EM131119723

Vanity Press, Inc., has annual credit sales of $1,600,000 and a gross profit margin of 35 percent.

a. If the firm wishes to maintain an average collection period of 50 days, what level of accounts receivable should it carry?
b. The inventory turnover for this industry averages six times. If all of Vanity’s sales are on credit, what average level of inventory should the firm maintain to achieve the same inventory turnover figure as the industry?

Reference no: EM131119723

Questions Cloud

Compute the return on stockholders equity if the company : Compute the return on stockholders' equity if the company has sales of $20 million and the following net profit margin: a. 3 percent b. 5 percent

Compare valanis criteria for a good screening program : Compare Valanis's criteria for a good screening program with the eight criteria which the ACC/American Heart Association (AHA) panel proposed for selection of a screening procedure

With social media proving to be a cost-effective way : With social media proving to be a cost-effective way to attract park visitors, should SeaWorld abandon its other promotional efforts and focus everything on social media? Why or why not? What steps can SeaWorld take to maintain a relation-ship with c..

Various forms of literature to understand areas : Throughout this course, you have explored the use of various forms of literature to understand areas of women's life experience. Consider how each author achieved a piece of a social change vision through her work.

Hat average level of inventory should the firm maintain : Vanity Press, Inc., has annual credit sales of $1,600,000 and a gross profit margin of 35 percent. a. If the firm wishes to maintain an average collection period of 50 days, what level of accounts receivable should it carry? b. The inventory turnove..

Design a superclass called shape that contains two functions : Design a superclass called Shape that contains two functions-getArea() and getInput(). The getArea and getInput functions in the Shape class will simply return 0.

Consumers really make up our own minds in market economy : Marketing Marketing Is more than Just advertising. It consists of all that Is done to get the product Into the hands of the consumer. Much of marketing is pyschological. Companies spend millions trying to figure out what the hot buttons are that will..

Recognition of profit and balance sheet presentation : Prepare a partial balance sheet for December 31, 2011, showing the balances in the receivable and inventory accounts.

What is the relationship between eva and mva : What is the relationship between EVA and MVA?

User Account

All Pages

Hat average level of inventory should the firm maintain

Reference no: EM131119723

Reference no: EM131119723

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Contracting and regulatory incentive

Develop your written communication skills

A telemarketing company consists of two customer service

Explain how prices of u.s. money market securities

Discuss how mergers and acquisitions play a role in venture

Calculate cash flow associated with the two heating model

Can you generate arbitrage profits?

Fr 2009 find the maximum amount they can transfer to plan

Preference for money at various points

Discuss the effect on stock market investor confidence

How much will your stock be worth on april 19

Wy might firm use local capital structure at particular

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT