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Pardun Corporation's Management Keeps Track of the Time It Takes

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Essay

Pardun Corporation's management keeps track of the time it takes to process orders.During the most recent month,the following average times were recorded per order: Pardun Corporation's management keeps track of the time it takes to process orders.During the most recent month,the following average times were recorded per order:   Required: a.Compute the throughput time. b.Compute the manufacturing cycle efficiency (MCE). c.What percentage of the production time is spent in non-value-added activities? d.Compute the delivery cycle time. Required:
a.Compute the throughput time.
b.Compute the manufacturing cycle efficiency (MCE).
c.What percentage of the production time is spent in non-value-added activities?
d.Compute the delivery cycle time.


Definitions:

Net Operating Working Capital

The difference between a company's current assets and its current liabilities, excluding short-term debt. It is indicative of a company's operational liquidity.

Balance Sheet

A report that provides an overview of a business's financial position, including what it owns (assets), owes (liabilities), and the value that remains for the shareholders (equity) at a particular moment.

Current Liabilities

Current liabilities are a company's debts or obligations that are due within one year.

Free Cash Flow

A financial metric that represents the amount of cash generated by a company after accounting for capital expenditures, essential for evaluating its liquidity, flexibility, and overall financial health.

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