The CEO of J&B, Ld., would like to propose in the next Council meeting a rise of capital as one of the possible ways to increase the forecast of the working capital for the next financial year and reached 6,000,000 €. This number will allow the company to have a degree of robustness comparable to other competitive companies in the industry. Daily Amount Average Deferments (days) Raw Materials 60.000 10 Salaries 150.000 Overheads 90.000 If the operating cycle is 30 days, what should the manager answer if a director asks him about the average deferment of the overheads?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The CEO of J&B, Ld., would like to propose in the next Council meeting a rise of capital as one of the
possible ways to increase the forecast of the working capital for the next financial year and reached
6,000,000 €. This number will allow the company to have a degree of robustness comparable to
other competitive companies in the industry.
Daily Amount
Average Deferments (days)
Raw Materials
60.000
10
Salaries
150.000
Overheads
90.000
If the operating cycle is 30 days, what should the manager answer if a director asks him about the
average deferment of the overheads?
Transcribed Image Text:The CEO of J&B, Ld., would like to propose in the next Council meeting a rise of capital as one of the possible ways to increase the forecast of the working capital for the next financial year and reached 6,000,000 €. This number will allow the company to have a degree of robustness comparable to other competitive companies in the industry. Daily Amount Average Deferments (days) Raw Materials 60.000 10 Salaries 150.000 Overheads 90.000 If the operating cycle is 30 days, what should the manager answer if a director asks him about the average deferment of the overheads?
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