Assets inventories

Working capital is the difference between the current asset (inventory of raw materials and finished products, receivables or goods sold but payment not yet collected) and the current liability (payables or goods received but not yet paid for). 

Cash ratio Current assets - inventory/current liabilities 1.0-1.5... 

Quick ratio = (current assets — inventories — prepaid expenses) -f- current liabilities... 

Inventory usually represents a pharmacy s largest current asset. Inventory also is the least liquid current asset, given that it generally cannot be turned to cash until it is sold to a consumer. The value of inventory to all pharmacies continues to rise owing to the increased variety and expense of pharmaceutical products. Therefore, proper management of inventory has a significant impact on both the financial and the operational aspects of any pharmacy (Huffman, 1996 West, 2003). 

Financial interest of capital for fixed assets inventory ... 

Radio frequency identification (RFID) is growing rapidly in multiple end use segments such as transportation, security, and asset/inventory management. Polymer blends can be used in the housings, internals, and plastic films containing passive tags. 

Asset inventory Similar to zone accurate lists of communication channels... 

Assets Inventory days of supply 119 days 55 days 38 days 22 days... 

Quick ratio = (Current assets - Inventories)/Current liabilities = ( 22,203 - 3,409)/ l7,839 = 1.05 times... 

Liquid assets are those that can be realized almost immediately, such as cash, accounts receivable, and marketable securities. Although inventories are current assets, they must not be regarded as hquid assets because they cannot usually be converted into cash without winding up the business. 

To chanicterize potential disasters by tjpe and extent, a survey of hazards or foreseeable tlireats in die community must be performed and evaluated. Widiout such information, an appropriate plan cannot be developed. An inventory of the community protection assets, liazard sources, and risks must be done before die actual plan is written. The procedures followed here is similar to diat provided in Part IV of this book - Hazard Risk Assessment. 

There is a formula for business failures based on Dun Bradstreet, Inc. annually published data. The vast majority of the firms involved are small. Why do failures occur D B has offered the following tabular explanation (apparent cause/percent) inadequate sales/49.9, competitive weakness/25.3, heavy operating expenses/13.0, receivables difficul-ties/8.3, inventory difficulties/7.7, excessive fixed assets/3.2, poor location/2.7, neglect/0.8, disaster/0.8, fraud/0.5, and others/1.1. Numbers do not add up to 100% because some failures are attributed to a combination of apparent causes. One can include that product design directly influences competitive weakness and heavy operating expenses. 

Because of the potential for extensive or catastrophic damage that could result from a malevolent act, additional equipment sources should be identified for the acquisition and installation of equipment and repair parts in excess of normal usage. This should be based on the results of the specific scenarios and critical assets identified in the vulnerability assessment that could be destroyed. For example, numerous pumps, vats, and mixers, specifically designed for the chemical industry, could potentially be destroyed. A certain number of long-lead procurement equipment should be inventoried and the vendor information for such unique and critical equipment maintained. In addition, mutual aid agreements with other industries, and... 

Assets are classified as current, fixed, or intangibles. Current assets include cash, cash equivalents, marketable securities, accounts receivable, inventories, and prepaid expenses. Cash and cash equivalents are those items that can be easily converted to cash. Marketable securities are securities that a company holds that also may be converted to cash. Accounts receivable are the amounts due a company from customers from material that has been delivered but has not been collected as yet. Customers are given 30, 60, or 90 days in which to pay however, some customers fail to pay bills on time or may not be able to pay at all. An allowance is made for doubtful accounts. The amount is deducted from the accounts receivables. Inventories include the cost of raw materials, goods in process, and product on hand. Prepaid expenses include insurance premiums paid, charges for leased equipment, and charges for advertising that are paid prior to the receipt of the benefit from these items. The sum of all the above items is the total current assets. The term current refers to the fact that these assets are easily converted within a year, or more hkely in a shorter time, say, 90 days. 

Assets The list of money on hand, marketable securities, monies due, investments, plants, properties, intellectual property, inventory, etc., at cost or market value, whichever is smaller. The assets are what a company (or person) owns. 

Working capital In the accounting sense, the current assets minus the current liabilities. It consists of the total amount of money invested in raw materials, supplies, goods in process, product inventories, accounts receivable, and cash minus those liabilities due within 1 year. 

Activity ratios are a measure of how effectively a firm manages its assets. There are two inventory/turnover ratios in common use today. The inventory/sales ratio is found by dividing the inventory by the sales. Another method is to divide the cost of sales by inventory. The average collection period measures the number of days that customers invoices remain unpaid. Fixed assets and total assets turnover indicate how well the fixed and total assets of the firm are being used. 

The accounting definition of woridng capital is total current assets minus total current liabilities. This information can be found from the balance sheet. Current assets consist chiefly of cash, marketable securities, accounts receivable, and inventories current liabilities include accounts payable, short-term debts, and the part of the long-term debt currently due. The accounting definition is in terms of the entire company. 

The products of our chemical processing industries themselves could become the instruments of terrorists because of their flammability, reactivity, toxicity, or notoriety. It is critical to minimize the vulnerability of chemicals or chemical assets to attack, contamination, or diversion for terrorist purposes, particularly as weapons of mass destraction. Critical challenges include the development of systems or chemistries that reduce the amount of or substitute for materials currently at risk, alter the attractiveness of such materials to terrorists, minimize the inventory and transportation of such materials, and that can detect and track the covert production and transportation of such materials. 

In this section, you inventory your retirement assets, project them to the year you plan to retire, compare the results to the total savings required at retirement, and calculate the additional amount you must save each year to meet your retirement income needs. 

An enterprise value of a product or company is probably the most common benchmark for valuation in that it represents the sum of the values of an asset, for a product these might be sales, IP rights, manufacturing capacity, inventory and trademarks. Each of these can be assigned a nominal value and be adjusted... 

TRANSFERRED ASSETS shall mean the Start-Up Inventory and the Product Data Package. 

Return on Net Assets (RONA) h Increase productivity Optimize assets y Reduce inventories /I r Reduction in repair and maintenance costs/conversion costs Optimized production planning / Reduction in off-specification material Optimized raw material and finished goods logistics... 

Finally, SCM has a direct impact on production and logistics assets utilization and on the entire inventory level, which represents on average around ten to 20 percent of sales. An improved supply chain performance, such as a potential ten to 20 percent increase in production asset utilization and/or a ten to 15 percent reduction in inventory levels, enables companies to postpone or even cancel planned capital expenditure. 

An alternative to the current ratio is the quick ratio (also known as the acid test). For this ratio, quick assets are defined as assets that are easily converted to cash. Therefore, inventories and prepaid expenses (such as prepaid rent and insurance policies) are not included in calculating assets. Because the quick ratio considers only assets that are easily converted to cash (and therefore can be used to pay bills, etc.), it provides a better picture of a company s liquidity and its ability to meet its financial obligations. 

Turnover ratios measure the efficiency with which an organization uses its assets. They are also referred to as efficiency ratios or asset utilization ratios. The two most commonly used turnover ratios are inventory turnover and receivables turnover. 

Current assets Petty cash Cash in bank Accounts receivable Allow for doubtful accounts Inventory—prescription Inventory—other Prepaid federal income tax Prepaid state income tax Total current assets Noncurrent assets Automobiles Machinery equipment Office equipment Leasehold improvements Accumulated depreciation Total noncurrent assets Total assets... 

The advantages related to this method of ownership can j ust as easily become disadvantages. The established assets, such as facilities and equipment, may be outdated or inadequate to meet the needs of the interested parties. The inventory of the business in question could consist of a large amount of out-of-date and unsalable items or even be too large for the pharmacy to support. The previously established policies and procedures could be in direct conflict with what the potential owner has in mind, thus creating potential human resources management problems. Additionally, the pharmacy s location may not be optimal, and the purchase price may be overinflated by goodwill. 

The fixed assets include not only the property and equipment that are normally thought of as assets, but also the intangible assets, such as patent rights and any strategic investments in other companies. The current assets cover not only cash, as already stated, but also unpaid invoices for goods sold, and inventories of unused raw materials, semifinished and finished products. 

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