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# EOQ and cash budget

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EOQ and completing a cash budget
(See attached file for full problem description and financial details)

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1. A firm annually sells 7,890 units. The cost of placing an order is \$100 and the carrying costs are \$2 a unit. What is the EOQ, the duration of the EOQ, and how many orders are placed annually? If the safety stock is 100 units, what are the maximum and average levels of inventory?

2. Given the following information, complete the cash budget:
a. Collection occur one month after the sale
b. January's credit sales were \$80,000
c. The firm has a certificate of deposit for \$40,000 that matures in April
d. Salaries are \$145,000 a month
e. The monthly mortgage payment is \$25,000
f. Monthly depreciation is \$20,000
g. Property tax of \$35,000 is due in February
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#### Solution Preview

EOQ and completing a cash budget
(See attached file for full problem description and financial details)

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1. A firm annually sells 7,890 units. The cost of placing an order is \$100 and the ...

#### Solution Summary

This provides the steps to compute EOQ and cash budget

\$2.19