The enterprise sells products for 52 million per year. Production takes place evenly over 5 working days (from Monday to Friday). Products are shipped to the buyer on Saturday evening. There is no production on Sunday. Determine the average annual need for working capital to service stocks of finished products. (Right answer is 0.5 million)

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 30P
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The enterprise sells products for 52 million per year. Production takes place evenly over 5 working days (from Monday to Friday). Products are shipped to the buyer on Saturday evening. There is no production on Sunday. Determine the average annual need for working capital to service stocks of finished products.

(Right answer is 0.5 million) 

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