Reference no: EM132028149

Permanent versus seasonal funds requirements.  Manchester Industries' current, fixed, and total assets for each month of the coming year are summarized in the following table.

Month             Current          Fixed              Total assets

                                         assets             assets               [(1) + ( 2 )]  

                                                  ( 1 )                ( 2 )                      ( 3 )            

            January         $ 15,000          $ 30,000              $ 45,000

                   February             22,000            30,000                52,000

                        March                 30,000             30,000                60,000

                        April                   18,000             30,000                48,000

                        May                    10,000             30,000                40,000

                        June                      6,000             30,000                36,000

                        July                       9,000             30,000                39,000

                        August                  9,000             30,000                39,000

                        September           15,000            30,000                45,000

                        October               20,000            30,000                50,000

                        November           22,000            30,000                52,000

                        December           20,000            30,000                 50,000

a. Divide the firm's monthly total funds requirement (total assets) into a permanent and a seasonal component.

b. Find the monthly average (1) permanent and (2) seasonal funds requirements using your findings in a.