Question
Kinara Company, which produces women's clothing, has seasonal funding needs. Kinara has seasonal sales, with sales peak during the Eid season. Kinara holds, as a
Kinara Company, which produces women's clothing, has seasonal funding needs. Kinara has seasonal sales, with sales peak during the Eid season. Kinara holds, as a minimum, $ 20,000 in cash and securities, $ 50,000 in inventory, and $ 30,000 in accounts receivable. At peak times, inventory increased to $ 200,000 and accounts receivable increased to $ 170,000.
For production efficiency, Kinara produces clothes consistently every period of the year. Thus, debt remains $ 40,000 for the entire year.
Please Calculate:
a. Permanent funding needs with a minimum level of business assets and during the season
b. Kinara total funding needs
c. Kinara's total funding needs
d. Total Cost of aggressive strategy
e. Total Cost of conservative strategy
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started