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What is the average production cycle for Rian Company?
P13-4 (similar to)
Average production cycle.
Use the following account information for Rian Company.
2013 and 2014 Selected Balance Sheet Accounts of Rian Company
12/31/14

12/31/13

Change

Accounts receivable $42,912
Inventory

$62,011

Accounts payable

$66,087

$29,433

$52,041

$9,129

$4,076
$27,645

$1,788

2014 Selected Income Statement Items for Rian Company
Cash sales $576000
Credit sales $500000
Total sales
Cost of goods sold $554736
For the coming year, Rian Company wants to reduce its average
production cycle to 39.5 days. If the target-ending inventory for 2015 is
$68267, what cost of goods sold will the company need to reach its
goal?
P13-5 (similar to)