Calculate the average manufacturing period and the average storage period.
We know the following data of the company Perfilados, S.A:
- 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
- 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
- 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
- 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
- With the data obtained in the previous points, it calculates the average period of economic maturity of Perfilados, S.A.
Calculation: Average = PMM = PA + PF + PV + PC – PP, PMM = PV + PC – PP03
