Reference no: EM133119740

Questions -

Q1. As one of the largest generator dealers in Surabaya, PT Listrik Menyala sells about 1,200 generators a year. The cost of placing an order with its supplier is IDR3,000,000 and the inventory carrying costs are IDR2,000,000 for each generator. The management of PT Listrik prefers to always maintain safety stock of 130 every year. Calculate:

What is the EOQ?

How many orders would the company need to place this year?

What is the average inventory for the year?

Q2. Megane Sharp Co., has net sales of JPY15 million, and 80 percent of these are credit sales. Its cost of goods sold is 68 percent of annual sales. The firm's cash conversion cycle is 45 days. The inventory balance at the firm is JPY1,900,000, while its accounts payable balance is JPY2,000,000.

What is the firm's accounts receivable balance (in JPY)?