Operating Cycle length. Data: Accounts Payable average amount: 200 Eur/day Total Purchases: 3200 Eur/year Row Material Inventory average amount: 220 Eur/day Purchased row materials: 1000 Eur/year Work in Progress inventory average amount: 80 Eur/day Costs of goods manufactured: 2000 Eur/year Finished goods inventory average amount: 2Eur/day Costs of goods sold: 200 Eur/year Accounts receivables average amount: 50 Eur/day Sales: 800 Eur/per year
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Calculate Cash Conversion Cycle and Operating Cycle length.
Data:
Accounts Payable average amount: 200 Eur/day
Total Purchases: 3200 Eur/year
Row Material Inventory average amount: 220 Eur/day
Purchased row materials: 1000 Eur/year
Work in Progress inventory average amount: 80 Eur/day
Costs of goods manufactured: 2000 Eur/year
Finished goods inventory average amount: 2Eur/day
Costs of goods sold: 200 Eur/year
Sales: 800 Eur/per year
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