Amman Ltd. is a manufacturing company that produces peper cups and plates in Nuwa. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic ansis durng the last year. However, the company has faced some senous bquidity problems due to delayed payment by the customers and lower sales in the first two quarters Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finarnce manager of the company is seeking your help in assessing the Average payment period from the following financial data The company had an opening stock of OMR 20,000 during the last year and made a total purchase of 41.000 OMR. The company has retumed OMR 3000 worth material due to quality issues During the last year, the business has paid OMR 6000 as wages and OMR 8000 as salaries. The company sold goods for a total amournt of OMR 70,000 of which OMR 30,000 sales was on cash bass Average detitors during the last year was 15,000 OMR, average creditors were 15,000 OMR and dosing inventory was OMR 26,000. Average payment period of Amman Ltd. from the following? O a. 121.67 O b. 128.56 O. 132.56 O d. 110.76
Amman Ltd. is a manufacturing company that produces peper cups and plates in Nuwa. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic ansis durng the last year. However, the company has faced some senous bquidity problems due to delayed payment by the customers and lower sales in the first two quarters Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finarnce manager of the company is seeking your help in assessing the Average payment period from the following financial data The company had an opening stock of OMR 20,000 during the last year and made a total purchase of 41.000 OMR. The company has retumed OMR 3000 worth material due to quality issues During the last year, the business has paid OMR 6000 as wages and OMR 8000 as salaries. The company sold goods for a total amournt of OMR 70,000 of which OMR 30,000 sales was on cash bass Average detitors during the last year was 15,000 OMR, average creditors were 15,000 OMR and dosing inventory was OMR 26,000. Average payment period of Amman Ltd. from the following? O a. 121.67 O b. 128.56 O. 132.56 O d. 110.76
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter11: Determining The Cost Of Capital
Section: Chapter Questions
Problem 1MC: During the last few years, Jana Industries has been too constrained by the high cost of capital to...
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