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]
Chapter1: Making Economics Decisions
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![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]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F830106e6-da64-480a-b567-a594b2f1ea41%2F053bf6ce-d949-4b2b-a2b6-eb3116a63d97%2Fhc2ys1d_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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]
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