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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.
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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