Find the inventory period

Assignment Help Finance Basics
Reference no: EM132724642

Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold. Accounts receivable are outstanding an average of 35 days, and the firm receives 40 days of credit on its purchases from suppliers.

Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?

*Note: To solve this problem, you will need to first find the Inventory Period, the Receivables Period, and the Payment Period.

Reference no: EM132724642

Questions Cloud

Estimate what is the cost of goods manufactured : Find What is the cost of goods manufactured? The manufacturing overhead amounts to 50% of the direct labor, and the direct labor
Cardiovascular and peripheral vascular problems : What is the likely diagnosis and how would you classify his diagnosis clinically?
Journalize the entry to record bad debts : Required - D & L uses the percentage of Sales Method to account for its' uncollectible, journalize the entry to record bad debts
Focused throat exam : Lily is a 20-year-old student at the local community college. When some of her friends and classmates told her about an outbreak of flu-like symptoms
Find the inventory period : Pretty Lady Cosmetic Products has an average production process time of 40 days. Finished goods are kept on hand for an average of 15 days before they are sold
Compute cost of goods transferred out and ending inventory : Ending inventory 1,100 units (50% complete to materials, 20% complete to conversion) Compute the cost of goods transferred out and the ending inventory
Advantage of the cash discount offer : Would you recommend borrowing from a bank at an 18 percent annual interest rate to take advantage of the cash discount offer?
Diabetes and drug treatments : Explain the differences between types of diabetes including type 1, type 2, gestational, and juvenile diabetes.
What is the firm weighted average cost of capital : Use the information to answer the following questions.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the value of the caplet

Suppose that the time 0 simple forward rate i(0,2) is 0.045 per year, the notional principal is LN is $40 million, the strike rate k is 0.04 per year.

  Prepare a loan amortization table

Newgen hotel successfully applies for a loan of $500000 on first year. the duration of the loan is 3 years and the rate of 10% per annum. principal and interest are payable in equal installments of every end of a year. required the annual repayment t..

  Calculate the after tax cash flows for the project for each

Calculate the after tax cash flows for the project for each year. Explain the methods used in your calculations. If the discount rate were 6 percent calculate the NPV of the project. Is this an economically acceptable project to undertake? Why or why..

  Explanation of tax implications of dividend policy

Could you give me explanation of tax implications of dividend policy?

  What is the stock price

What is the stock price that has a 2.5% probability of being exceeded in 6 months equals?

  Calculate the project initial time 0 cash flow

Calculate the project's initial Time 0 cash flow, taking into account all side effects. Assume that the net working capital will not require flotation costs.

  Tax on interest and capital gains

Present your answers to the above questions in a Excel spreadsheet

  Suppose you bought a five-year zero-coupon treasury bond

1. suppose you bought a five-year zero-coupon treasury bond for 800 per 1000 face valuea. what is the rate of return on

  Star wall street trader is negotiating his 1st contract

A star Wall Street trader is negotiating his 1st contract. His opportunity cost is= 10%. He has been presented the 3 year contracts which are given below.

  Compute the net proceeds to houston corp

The Houston Corp. needs to raise money for an addition to its plant. It will issue 300,000 shares of new common stock. The new shares will be priced at $60 per share with an 8.5% spread on the offer price. Registration costs will be $150,000.

  Consideration in choosing a business location

What are some key factors needed for consideration in choosing a business location and why is location a key finance factor for most businesses?

  What are the erm strengths and weaknesses of strategy

In the process, the bank gave enormous trading authority to one individual. What are the ERM strengths and weaknesses of this strategy?

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