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, $ 50,000 in cash and securities, $ 200,000 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.

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.

Answer rating: 100% (QA)

a 50000 200000 30000 280000 50000 200000 170000 420000 Permanent funding needs 280000 Permanent fund... View the full answer