Purchase Solution

EOQ and cash budget

Not what you're looking for?

Ask Custom Question

EOQ and completing a cash budget
(See attached file for full problem description and financial details)

---
1. A firm annually sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ, and how many orders are placed annually? If the safety stock is 100 units, what are the maximum and average levels of inventory?

2. Given the following information, complete the cash budget:
a. Collection occur one month after the sale
b. January's credit sales were $80,000
c. The firm has a certificate of deposit for $40,000 that matures in April
d. Salaries are $145,000 a month
e. The monthly mortgage payment is $25,000
f. Monthly depreciation is $20,000
g. Property tax of $35,000 is due in February
---

Attachments
Purchase this Solution
Solution Summary

This provides the steps to compute EOQ and cash budget

Solution Preview

EOQ and completing a cash budget
(See attached file for full problem description and financial details)

---
1. A firm annually sells 7,890 units. The cost of placing an order is $100 and the ...

Purchase this Solution
Free BrainMass Quizzes
Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Motivation

This tests some key elements of major motivation theories.

View More Free Quizzes
Related BrainMass Solutions

  • Working Capital Management, EOQ, and External Funds

    Part Two: Cash Budget Capers, Inc. is developing its cash budget for the next year. Of Capers' sales, 20% is for cash, another 60% is collected in the month following sale, and 20% is collected in the second month following sale.

  • Cash Budgeting for a National Charity

    However, once you've carefully mapped out a cash budget, you will be able to compare it to the actual cash inflows and outflows of your business.

  • Inventory Management and Average Cash Balance

    Solution shows calculations of EOQ, number of orders, average inventory and total cost.

  • Cash Cycles: Audi

    EOQ and Cash Cycles EOQ: An online source noted that economic order quantity (EOQ) is computed using the formula: EOQ = √ (2ACp / Ch) Where A = demand for the year Cp = cost to place a single order Ch = cost to hold one unit of inventory

  • Determine EOQ for bank cash

    Determine the optimal policy for obtaining cash, that is how much and at what point?

  • Management: Planning for the Future

    Why would a cash budget be of particular importance to a firm that experiences seasonal fluctuations in sale? A cash budget reflects how cash flows in and out of a business and it is also useful for planning short-term credit needs.

  • EOQ and Total Inventory Costs of DP Dolls

    The solution contains step-by-step calculations to determine the EOQ and total inventory costs for DP Dolls.

  • Importance of Evaluating an Organization's Fixed Assets.

    Cash budget. Retrieved from http://www.accountingtools.com/cash- budget. Brigham, Eugene F., and Dr. Joel F. Houston. Fundamentals of Financial Management, Concise Edition , 8e, 8th Edition.

  • Current Assets Management for the Logan Distributing Company

    b) Determine EOQ before and after the change in the cash discount policy. Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy.

View More Related Solutions