1 2 3 4 5 6 7 8 9 Annual outlays for operating cycle investments: Average collection period: Average payment period: Inventory turnover: Average inventory balance Working capital financing rate: What is the average age of inventory? What is cost of goods sold? What is the operating cycle? What is the cash conversion cycle? What is the amount of dollars required to finance net working capital? What is the total annual cost to finance working capital? Banyan is considering several operating changes. These effect of these changes would be: Increase in inventory turnover to 7.2 times. Increase in average collection period of 10 days. What is the new average aggof inventory? What is the new average inventory balance? What is the new average collection period? What is the new CCC? What is the new annual cost of financing? Selected inventory information for Banyan Environmental: Pallets of herbicide purchased: Chemical composition: Annual carrying cost per pallet: 1 Cost of placing each order: What is the economic order quanty for herbicide? $ 25,000.00 s5 47 days 28 days 6.5 times a year 2,300 6.25% 2.2 times 10 days 1,200 glyphosate 57.00 850.00

1 2 3 4 5 6 7 8 9 Annual outlays for operating cycle investments: Average collection period: Average payment period: Inventory turnover: Average inventory balance Working capital financing rate: What is the average age of inventory? What is cost of goods sold? What is the operating cycle? What is the cash conversion cycle? What is the amount of dollars required to finance net working capital? What is the total annual cost to finance working capital? Banyan is considering several operating changes. These effect of these changes would be: Increase in inventory turnover to 7.2 times. Increase in average collection period of 10 days. What is the new average aggof inventory? What is the new average inventory balance? What is the new average collection period? What is the new CCC? What is the new annual cost of financing? Selected inventory information for Banyan Environmental: Pallets of herbicide purchased: Chemical composition: Annual carrying cost per pallet: 1 Cost of placing each order: What is the economic order quanty for herbicide? $ 25,000.00 s5 47 days 28 days 6.5 times a year 2,300 6.25% 2.2 times 10 days 1,200 glyphosate 57.00 850.00

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 5SEQ

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