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Finmark Finals Formula
Finmark Finals Formula
Holding Cost
Transaction Cost
OPERATING CYCLE
FLOAT
( TOTAL NUMBER OF DAYS TO RECEIVE & DEPOSITS) - (DECREASE IN FLOAT TIME)
*AVERAGE DAILY RECIEPTS
=REDUCTION IN FLOAT
REDUCTION IN FLOAT
* RATE OF RETURN
= AMOUNT OF RETURN
LOCKBOX COST
- AMOUNT OF RETURN
= IF NEGATIVE IT IS NET DISADVANTAGE
EXCESS CASH
BREAK EVEN YIELD
INTEREST =PRINCIPAL*RATE*TIME
Total Ordering Cost
Average inventory
Total Carrying Cost
Reorder point
Average daily requirement/ Average Usage
Normal Lead Time Usage
Safety Stock
=Annual Requirement/365
=Average Daily Requirement* Lead time
Average Investment In AR
Incremental Sales
Sales
Variable cost
Contribution Margin
Net Income
Daily Sales
Average Investment in AR ( Decrease in Average AR)
Decrease in OPPORTUNITY COST (Savings from Finances)
= Average Collection Period * Average Daily Sales
or = Net Credit Sales/ AR Turnover
Err:509
=Units*Selling Price
= Units*Variable cost per Unit
= Sales - Variable Cost
= Contribution Margin - (Fixed Cost, Collection Cost, Bad Debts, etc.)
Inventory Turnover
Merchandise inventory Turnover = COGS/Average Merchandise Inventory
Finished Good Inventory Turnover = COGS/ Average Finished Goods Inventory
unity cost
Asset Turnover = NetSales/ Total Average Assets
AR Turnover = Net Credit Sales / Average accounts AR
Average Collection Period = 360 / Ar Turnover or
= Average AR/ Average Daily Sales
Average Daily Sales = Net Credits Sales/ 360
Inventory Turnover
Merchandise inventory Turnover = COGS/Average Merchandise Inventory
Finished Good Inventory Turnover = COGS/ Average Finished Goods Inventory