Question

I believe the answer deals with the following: Average = PMM = PA + PF + PV + PC – PP

I am uncertain what you require, I was able to complete with a little help a through d. I did not see e so I am looking for help on it. It requires information from the information in a through d. Thank you for your efforts!

Last question e

6.0 Calculate the average manufacturing period and the average storage period.

We know the following data of the company Perfilados, S.A:

1. It bought and consumed € 105,000 in raw materials for the manufacture of its product and, on average, maintained a stock level of them in the stock of € 9,250. Calculate the average storage period.

Average storage time = (average inventory / cost of annual purchases) x 360 days

Calculation: 9250/105000*365=32.1 days

2. The cost of its annual production is € 198,000, and the average value of the products under development is € 11,000. Calculate the average manufacturing period.

Calculation: 198,000/11,000= 18

3. Taking into account that the company exclusively sold all its annual production and that the average value of its stock in finished goods warehouse was € 18,500, it calculates its average sales period.

Average accounts receivable ÷ (Annual sales ÷ 365 days)-I could not find in course material and not sure how this formula is helpfull

Calculation: Average Accounts Receivable/ (Annual Sales/365 days)

Annual Sales = €198,000 (as entire annual production is sold)

Average Accounts Receivable= average value of stock in finished goods or € 18,500

Lastly, Average Sales=€ 18,500/ (€198,000/365 days)= (=€ 18,500/542.46)=34.1 days

4. Assuming that the company sold its products for an amount of € 290,000 and that the customers had on average a debt with the company of € 17,000, it calculates the average collection period.

Receivables turnover= Sales Revenue/Any accounts receivables

Average Collection Period=365/Receivable turnover

Calculation:

Receivables turnover= 290,000/17,000

Receivables turnover=17

Average Collection Period=365/17

Average Collection Period=21.5

5. With the data obtained in the previous points, it calculates the average period of economic maturity of Perfilados, S.A.

Calculation: Average = Sum of repayments/sum of total payments?

Answer 1