17. From the following information provided by Z Ltd., compute the Working Capital requirement: (i) Expected monthly

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17. From the following information provided by Z Ltd., compute the Working Capital requirement:

(i) Expected monthly sales: 16,000 units @ `10 per unit

(ii) Cost of raw materials: 40% of sales

(iii) Cost of labour: 30% of sales

(iv) Overhead: `8,000 per week

(v) Stock will include raw materials for `48,000 and 8,000 units of finished goods.

(vi) Credit allowed to debtors: 5 weeks

(vii) Credit allowed by creditors: 1 month

(viii) Processing period: 2 weeks

(ix) Lag in overhead payment: 2 weeks (x) Production is carried on evenly during the year and expenses accrue in the same way.

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Financial Management

ISBN: 9789352605606

1st Edition

Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana

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