The remaining 1/3 of yearly production will take place in July and October. * As production only accounts for 50% of production capacity, I will assume no additional capital expenditures in the near future * Assume that farmer’s were paid upon delivery at prevailing market prices * Assume that normal practice was to sell entire season’s pack before next canning season, thus keeping inventory low * Assume sales breakdown as follows: (Jul-Oct: 50%); (Nov-Dec: 20%); (Jan-Jun: 30% evenly throughout) * Assume A/R as net 30-day term, with bad-debt losses
The remaining 1/3 of yearly production will take place in July and October. * As production only accounts for 50% of production capacity, I will assume no additional capital expenditures in the near future * Assume that farmer’s were paid upon delivery at prevailing market prices * Assume that normal practice was to sell entire season’s pack before next canning season, thus keeping inventory low * Assume sales breakdown as follows: (Jul-Oct: 50%); (Nov-Dec: 20%); (Jan-Jun: 30% evenly throughout) * Assume A/R as net 30-day term, with bad-debt losses