Illustrate working capital cycle in a manufacturing business, Financial Management

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)

 

 

Posted Date: 8/31/2013 5:57:24 AM | Location : United States







Related Discussions:- Illustrate working capital cycle in a manufacturing business, Assignment Help, Ask Question on Illustrate working capital cycle in a manufacturing business, Get Answer, Expert's Help, Illustrate working capital cycle in a manufacturing business Discussions

Write discussion on Illustrate working capital cycle in a manufacturing business
Your posts are moderated
Related Questions
Additional information required Specification of a time scale for the evaluation. Predict cash flow details year by year for period specified in the time scale. An approxima

Q. Computation of Value of the Firm? Computation of Value of the Firm (V) & Overall Cost of Capital:- NI                    = EBIT - Interest = 50,000 - 20,000 = 30,000

As an investor, what factors would you consider before investing in the emerging stock market of a developing country? Answer:  An investor in emerging market stocks requirements

After the bid Tactics can be undertaken by directors to ensure that their shareholders don't accept the bid, if that is what they desire. Reject Share

What are the main elements of capital budgeting decisions There are three elements of capital budgeting decisions (i) long-term assets and their composition (ii) business

Debt holders versus Shareholders A second agency problem arises because of potential conflict between stockholders and creditors. Creditors lend finances to the firm at rates w

are footnotes important in analysing ratios

Church Inc. is currently enjoying relatively high growth because of a surge in the demand for its latest product.  Management expects earnings and dividends to grow at a rate of 25

Event-Driven Strategies : These strategies are solely focus on events of corporate life cycle for investing. They involve significant opportunities created by corporate events such

Examine about Environmental (external) analysis "A study that considers potential environmental effects during planning phase before an investment is made or an operation start