Avon Barksdale's operation uses large quantities of prepaid cell phones, on average 500 per week with a standard deviation of 45. The lead time for their own brand of prepaid cell phones is 2 weeks and they have a lot size of 125 phones. If Mr. Barksdale sets his reorder point at 1,100 phones, what is his average cell phone inventory?

162.5 phones

Explanation:

The Avon Barksdale's operation uses 500 cell phones per week. The order quantity is 125 phones which takes 2 weeks to to deliver. To calculate the average inventory for Avon Barksdale we will subtract reorder quantity from the weekly use of cell phones.

500 per week * 2 weeks = 1,000 cell phones

he reorder point is 1,100 phones.

1,100 - 1,000 = 100 cell phones

The lead time is 2 weeks for 125 phones delivery

125 / 2 weeks = 62.5

62.5 + 100 = 162.5 phones

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.