The CEO of J&B, Ld., would like to propose in the next Council meeting a rise of capital as one of the possible ways to increase the forecast of the working capital for the next financial year and reached 6,000,000 €. This number will allow the company to have a degree of robustness comparable to other competitive companies in the industry. Daily Amount Average Deferments (days) Raw Materials 60.000 10 Salaries 150.000 7 Overheads 90.000 ? If the operating cycle is 30 days, what should the manager answer if a director asks him about the average deferment of the overheads? ( answer: Average deferment in Overhead is 15 days)
The CEO of J&B, Ld., would like to propose in the next Council meeting a rise of capital as one of the
possible ways to increase the
6,000,000 €. This number will allow the company to have a degree of robustness comparable to
other competitive companies in the industry.
Daily Amount Average Deferments (days)
Raw Materials 60.000 10
Salaries 150.000 7
Overheads 90.000 ?
If the operating cycle is 30 days, what should the manager answer if a director asks him about the
average deferment of the overheads?
( answer: Average deferment in Overhead is 15 days)
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