case 14 - Annual Net Profit= $1,750,000.00 $1,900,000.00 E)...

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A) OC= Average age of inventories  +  Average collection period OC= 180 Days CCC= Operating Cycle  -  Average payment period CCC= 155 Days Resource Investment =   Total Annual Outlays/365 X CCC  Resource Investment =   $5,095,890.41  Daily B) OC= 127 Days CCC= 87 Days Resource Investment=  $2,860,273.97  Daily C) A B Annual Cost =  $6,904,109.59   $9,139,726.03  (12,000,000-RI) D) Without Discount With Discount
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Unformatted text preview: Annual Net Profit= $1,750,000.00 $1,900,000.00 E) Annual Cost= $357,582.56 (150,000=cost of achieving an 85 day average of inventory F) The firm should incur the annual cost to achieve the industry level of operational efficiency because the cost will be less than the profit, resulting in an increase in net income. ry)...
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This note was uploaded on 02/21/2011 for the course ACFI 385 taught by Professor Long during the Spring '10 term at Bridgewater State University.

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case 14 - Annual Net Profit= $1,750,000.00 $1,900,000.00 E)...

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