07 Jan QUESTION4 (10 + 10 = 20 marks)Modern Furniture Ltd
QUESTION4 (10 + 10 = 20 marks)Modern Furniture Ltd competes in themodern furniture retail market alongsideAdair’s, Harvey Norman and other major furniture retailers. The market is highly competitive prompting management to review working capital practices. Detailed below are relevant figures and ratios to assist you in evaluatingModern Furniture’s working capital management.Working Capital Ratios2014201520162017Accounts Receivable Days30.0 days38.6 days44.0 days51.0 daysInventory Days30.0 days34.5 days37.0 days46.0 daysAccounts Payable Days29.6 days30.2 days38.2 days53.0 daysNote: Ratios are based on assuming end year figures are the average throughout the majority of the yearExtracts from Financial StatementsCash on hand0.35mill0.3mill.01mill.005millSales all on credit15 mill14 mill15mill16millAccounts Receivable Balance1.2 mill1.5 mill1.8 mill2.2 millInventory0.66 mill0.79 mill0.9 mill1.17millCost of Goods Sold8.0 mill8.5 mill8.9 mill9.3 millAccounts Payable0.65mill0.7 mill0.95 mill1.35 millBudgeted FiguresCash on hand0.3 mill0.3 mill0.31 mill0.32 millAccounts Receivable Balance1.2 mill1.22 mill1.28 mill1.35 millInventory Balance0.7 mill0.72 mill0.78 mill0.80 millAccounts Payable0.64 mill0.65 mill.70 mill0.71 millAccounts Receivable Terms30 days 30 days 30 days 30 daysAccounts Payable Terms45 days45 days45 days45 daysIndustry AveragesAccounts Receivable Days30.1 days29.6 days30.4 days33.1 daysInventory Days30 days31 days33 days32.2 daysAccounts Payable Days30 days28.5days17 days15 days
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.