Maxene Joi A.

Pigtain DAYS OF INVENTORY

SALES BUDGET
Expected Unit Sales x Sales Price = TOTAL SALES

PRODUCTION BUDGET
Required Production in unit = Expected Sales + Target
DAYS OF SALES OUTSTANDING (DSO)
Ending Inventories – Beginning Inventories

PERCENT OF SALES METHOD

Forecasted Sales = Current Sales x (1 +
Growth Rate/100)

FORECAST COST OF SALES CASH CONVERSION CYCLE

EXTERNAL FUNDS NEEDED

EFN = change in total assets – (change in DAYS OF PAYABLES OUTSTANDING (DPO)
total liabilities + total change in
stockholders’ equity)

DAYS OF INVENTORY