Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
6 views2 pages

Ex 7 - Lecture 7

The document provides calculations related to accounts receivable and inventory management. It includes the Average Collection Period, Average Accounts Receivable, Receivables Turnover, and the Economic Order Quantity (EOQ). Recommendations are made to optimize inventory policy by adjusting order sizes to reduce total costs.

Uploaded by

Uyên Đỗ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
6 views2 pages

Ex 7 - Lecture 7

The document provides calculations related to accounts receivable and inventory management. It includes the Average Collection Period, Average Accounts Receivable, Receivables Turnover, and the Economic Order Quantity (EOQ). Recommendations are made to optimize inventory policy by adjusting order sizes to reduce total costs.

Uploaded by

Uyên Đỗ
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Ex 1

a)

b)

 (a) Average Collection Period = 17 days


 (b) Average A/R = $927,406.67

Ex 2:

Average Accounts Receivable = $103,629.66

Ex 3:
a)
b)

Annual Credit Sales = $749,270.83


Receivables Turnover = 15.2 times
Ex 4:

EOQ = 9,532 units (optimal order size)


The company’s current inventory policy is not optimal. By increasing the order
size closer to the EOQ, the company can reduce total inventory costs, including
fixed ordering costs and carrying costs.

You might also like