Hubble Space Incorporated has the following data which includes inventory conversion period or ICP of the firms against which it benchmarks. The firm's new manager is looking into the company on how he could reduce its inventory enough to reduce its ICP to the benchmarks average. If this were done, by how much would inventories decrease? Assume a 365-day year. Cost of goods sold =P85,000; Inventory =P20,000; Inventory conversion period (ICP) =85.88; Benchmark inventory conversion period (ICP) =38.00 *

5 points

P 9,032

P 7,316

P11,151

P10,036

P 8,129

Ceres Space Corporations allotted a budgeted monthly sales are P3,000. In this case, forty percent of its customers pay in the first month and take the 2 percent discount. The remaining sixty percent pay in the month following the sale and dont receive a discount. Ceres' bad debts are very small and are excluded from this analysis. Purchases for next months sales are constant each month at P1,500. Other payments for wages, rent, and taxes are constant at P700 per month. Construct a single months cash budget with the information given. What is the average cash gain or (loss) during a typical month for this corporation? *

5 points

P728

P2,600

P740

P776

P800