Illustrate working capital cycle in a manufacturing business, Financial Management

Assignment Help:

Working capital cycle in a manufacturing business

Average time raw materials are in stock (raw materials/purchases x 365 days)

Plus

Time taken to produce goods

Work in progress days (work in progress / cost of goods sold x 365 days)

Finished goods days(finished goods / cost of goods sold x 365 days)

Plus

Time taken by customers to pay for goods(receivable days)

Less

Period of credit taken from suppliers(payable days)

Equals

Working capital cycle (in days)

Related Discussions:- Illustrate working capital cycle in a manufacturing business

Budget, what are the advantages and disadvantages of incremental budgeting?...

what are the advantages and disadvantages of incremental budgeting?

Calculate the stock price of the company, As the CEO of PG Industries, you ...

As the CEO of PG Industries, you are hired at the pleasure of the Board of Directors, who in turn are elected by the shareholders. You are considering Project A which you are convi

Bonds Valuation, Six years ago . the singleton company sold a 20 year bond ...

Six years ago . the singleton company sold a 20 year bond with a 14% annual coupon rate and a 9% call premium. today, singleton called the bonds. the bonds originally were sold at

On-the-run treasury issues, On-the-run treasury issues are the most r...

On-the-run treasury issues are the most recently auctioned issues of a given maturity. They include Treasury bills of 3-month, 6-month and 1-year maturity; treas

Consequence of the cash operating cycle, Q. Consequence of the cash operati...

Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal

Statement used in working capital requirement, • Debtors :- Working Capi...

• Debtors :- Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation): [Cost of goods produces (that is raw materials + wages

No title, discuss the steps in the controlling process

discuss the steps in the controlling process

What is the purpose of the small business administration, 1. Discuss and de...

1. Discuss and describe in your own words the five Cs of credit analysis. 2. Why is it difficult for an entrepreneur to finance a startup with debt? What are the dangers of cre

Explain the diversify investor's portfolio internationally, Why might it be...

Why might it be very simple for an investor desiring to diversify his portfolio internationally to buy depository receipts as compared to the actual shares of the company? Answ

George thomas, which type of financing is appropriate to each firm

which type of financing is appropriate to each firm

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages