During the Most Recent Month at Harrison Corporation, Storing Time

question 15

Essay

During the most recent month at Harrison Corporation, storing time was 3.0 days, inspection time was 0.8 days, processing time was 2.8 days, and moving time was 0.6 days.
Required:
a. Compute the manufacturing cycle time.
b. Compute the manufacturing cycle efficiency.
c. What percentage of the production time is spent in non-value-added activities?

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Definitions:

Financing Activities

Transactions and business activities that result in changes in the size and composition of the equity capital and borrowings of an entity.

Price-To-Book Ratio

A financial ratio used to compare a company's current market price to its book value, indicating the market's valuation of the company relative to its equity value.

Earnings Yield

The inverse of the price-to-earnings ratio, representing the earnings per share divided by the price per share.

P/E Ratio

The price-to-earnings ratio compares a company's share price to its earnings per share, indicating how much investors are willing to pay per dollar of earnings.