I submitted this assigment and someone had agreed to do it but
after the downpayment was made he did not complete. I need
this done ASAP tonight.
Pretty Lady Cosmetic Products has an average production
process time of forty days. Finished goods are kept on hand for
an average of fifteen days before they are sold.
Accounts receivable are outstanding an average of thirty-five
days, and the firm receives forty days of credit on its purchases
from suppliers.
a.
Estimate the average length of the firm’s short-term operating
cycle. How often would the cycle turn over in a year?
b.
Assume net sales of $1.2 million and cost of goods sold of
$900,000. Determine the average investment in accounts
receivable, inventories, and accounts payable. What would be
the net financing need considering only these three accounts?
Chapter 16: P3
Obtain a current issue of the Federal Reserve Bulletin, or
review a copy from the Fed’s website(
http://.www.federalreserve.gov
) or the St. Louis Fed’s website (
http://stlouisfed.org
), and determine the changes in the prime rate that have
occurred since the end of 2000. Comment on any trends in the
data