Calculate the needs of working capital A company plans annual operating costs of 3.65 mil. EUR. Due to their supply politics they plan to have 30 days inventory turnover while they have a 20 day maturity of supplier invoices. Company has 4 groups of customers:1st group are stable customers, whom the company grant a 30 day trade credit. They make 30 % of all customers.2nd group are reliable business partners buying in smaller amounts. They are granted 20 day trade credit and their share is 30 % of all customers. 3rd group are local buyers who are personally known and get 50 day trade credit. They make 20 % of customers. 4th group are random buyers paying in cash. 1. Calculate the need of working capital. The answer is [WCN]

Calculate the needs of working capital A company plans annual operating costs of 3.65 mil. EUR. Due to their supply politics they plan to have 30 days inventory turnover while they have a 20 day maturity of supplier invoices. Company has 4 groups of customers:1st group are stable customers, whom the company grant a 30 day trade credit. They make 30 % of all customers.2nd group are reliable business partners buying in smaller amounts. They are granted 20 day trade credit and their share is 30 % of all customers. 3rd group are local buyers who are personally known and get 50 day trade credit. They make 20 % of customers. 4th group are random buyers paying in cash. 1. Calculate the need of working capital. The answer is [WCN]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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