Marcel Must Temporarily Invest Some Extra Funds in His Retail

question 114

Short Answer

Marcel must temporarily invest some extra funds in his retail business every fall to purchase inventory in preparation for the Christmas season. On September 1 he already had a total of $57,000 invested in his business. On October 1 he invested another $15,000, and on November 1 he injected $27,000. He was able to withdraw $23,000 on February 1, $13,000 on March 1, and $6,000 on May 1. What was the average cumulative investment in the business during the period from September 1 to August 31? (Assume that each month has the same length.)

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Definitions:

Earnings Per Share

A financial ratio that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Financial Performance

An assessment of how well a company can use assets from its primary mode of business and generate revenues.

Capital Required

The total amount of funds needed to operate a business or undertake a project, including costs for assets, resources, and day-to-day operations.

Reported Earnings

This refers to the net income that a company officially reports in its financial statements for a specific period, reflecting the firm's financial performance.