Capital stock is the number of common and preferred shares that a company is authorized to issue, and is recorded in shareholders' equity. The King formula uses a cycle service.If you use a different service level metric, the formula needs to be adjusted. Paid-in capital is the total amount of cash that a company has received in exchange for its common or preferred stock issues. Therefore, the average inventory level over the cycle is safety stock plus half the cycle stock. These equations are accurate for purchased.

Capital Stock Formula In King

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