Based on the sales, cost of goods, and days on average, the average investment of Pretty Lady Cosmetics is:
- Average Receivables - $115,068.50.
- Average Inventories - $36,986.30.
- Average payables - $96,630.14.
- Net financing needs - $53,424.66.
<h3>What are the average investments for Pretty Lady Cosmetic Products?</h3><h3 />
The Average Receivables are:
40 days = Average AR ÷ (1,200,000/365)
= $115,068.50
The Average Inventories:
15 days = Average inventory ÷ COGS per day
15 = Average inventory ÷ (900,000 / 365)
= $36,986.30
The Average payables:
40 days = Average payables ÷ COGS per day
40 = Average payables ÷ (900,000 / 365)
Average payables = $98,630.14
Net financing needs:
= Average Inventories + Average Receivables - Average payables
= 115,068.50 + 36,986.30 - 98,630.14
= $53,424.66
Find out more on Average Payment period at brainly.com/question/24178209.
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