8. Icy Treats, Inc., is a seasonal business that sells frozen desserts. At the p

Question

8. Icy Treats, Inc., is a seasonal business that sells frozen desserts. At the peak of its summer selling season the firm has $36,400 in cash, $130,000 in inventory, $72,800 in accounts receivable, and $67,600 in accounts payable. During the slow winter period the firm holds $10,400 in cash, $57,200 in inventory, $41,600 in accounts receivable, and $35,100 in accounts payable. Calculate lcy Treats' minimum and peak funding requirements. Icy Treats' minimum funding requirement is $ . (Round to the nearest dollar.) Icy Treats' peak funding requirement is $ . (Round to the nearest dollar.)

Explanation / Answer

Peak season Slow season Increamental fund required Cash 36400 10400 26000 Inventory 130000 57200 72800 Accounts receivable 72800 41600 31200 Less: Accounts receivable -67600 -35100 -32500 Total fund required 171600 74100 97500 *So Icy treats' minimum funding requirement is $74100 *And Icy treats' peak funding requirement is $171600

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