The forecast change in the net operating working capital

Assignment Help Operation Management
Reference no: EM131699148

ABC expects to drop from $17,990,000 to $15,238,000 in sales next year as the gross profit margin increases from 40.6 percent to 50.9 percent following a series of price increases for their core products. The Days of Accounts Receivable is forecast to change from 10.7 days to 13.5 days and the Days of Inventory is forecast to change from 30.2 days to 35.3 days. Those changes will be partially offset by an anticipated change in the Days of Accounts Payable from 27.9 days to 30.4 days. Assuming that actually occurs, what is the forecast change in the net operating working capital. If your answer is negative, be sure to include the negative sign.

Reference no: EM131699148

Questions Cloud

Concerns of google for qualitative considerations : What is sensitivity to environmental concerns of Google for Qualitative considerations
calculate MTM predetermined overhead rate : Assume that MTM manufacturing estimates it will spend $1 million on overhead expenses. What is the formula to calculate MTM's predetermined overhead rate
Electrical conductivity of insulators is the range : 1. Electrical conductivity of insulators is the range _____________.
Benefit the managers responsible for production of bacon : How would adopting a Process Costing system benefit the managers responsible for the production of bacon?
The forecast change in the net operating working capital : what is the forecast change in the net operating working capital. If your answer is negative, be sure to include the negative sign.
Test for the existence of a linear relationship : For Example, test for the existence of a linear relationship between returns on the stock and returns on the market as a whole.
What is the importance of employee performance : What is motivation and how its different forms are related. - What is the importance of employee performance and The relationship between intrinsic
Record the entries for jen manufacturing : Record the following entries for Jen Manufacturing. Factory overhead expenses totaling $5,000 were paid in cash
Derive a switch implementation for a boost converter : Derive a switch implementation for a boost converter so that the input and output circuits share a common positive terminal.

Reviews

Write a Review

Operation Management Questions & Answers

  International labor organization consolidate

Considering the recent attention on Fiji government's relationships with employer/business interests, is the influence of these groups on political representatives a threat to democratic processes? In what two ways does the International Labor Org..

  Determine the effectiveness of hrm practices

Why do you think that few companies take the time to determine the effectiveness of HRM practices?

  Difference in management perspective-employee perspective

Explain the difference between a "management perspective" and an "employee perspective and discuss your level of comfort with taking on the role of a management perspective.

  Starting point in developing a capacity plan

1  What is the important starting point in developing a capacity plan?

  Design product structure nothing quantities for each item

As the production planner for Scott Sampson Product, Inc., you have been given a bill of meterial for a bracket that is made up of a base, two springs, and four clamps. Design a product structure nothing the quantities for each item and show the low-..

  What is the resulting annual holding cost

SY Manufacturers (SYM) is producing T-shirts in three colors: red, blue, and white. The monthly demand for each color is 1,875 units. Each shirt requires 0.75 pound of raw cotton that is imported from the Luft-Geshfet-Textile (LGT) Company in Brazil...

  Describe the concept of cash in advance

Why is it more difficult and riskier to collect receivables from a foreign purchaser? Describe the concept of cash in advance. Describe the mechanism of a letter of credit, from the exchange of the pro forma invoice to final payment.

  The strategic significance for the company

describe the objective of this process, the participants, and the strategic significance for the company. The business process you select must have a clear beginning and an end, with identifiable, specific steps. Your instructor will confirm that ..

  What are the traits and behaviors for the effective leaders

What are the traits and behaviors for the effective leaders and how to become good to great?

  Dramatic impact on the planning and management of logistics

Changes in consumer behavior have had a dramatic impact on the planning and management of logistics. One of these changes has been the trend toward "mass customization." What is mass customization and what are the implications for logistics managers?

  Big data raises many questions about security

Big Data Security Must post first. Big Data raises many questions about security, ethical standards, and proper use of data in health information systems.

  What should be the primary objective of managers

Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre, a professional tennis player who has just come to the United S..

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!

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