5. A proforma cost sheet of a company provides the following particulars: Elements of Cost Material 40%
Question:
5. A proforma cost sheet of a company provides the following particulars:
Elements of Cost Material 40%
Direct Labour 20%
Overheads 20%
The following further particulars are available:
(a) It is proposed to maintain a level of activity of 2,00,000 units.
(b) Selling price is `12 per unit.
(c) Raw materials are expected to remain in stores for an average period of 1 month.
(d) Materials will be in process, on average of ½ month.
(e) Finished goods are required to be in stock for an average period of 1 month.
(f) Credit allowed to debtors is 2 months.
(g) Creditor allowed by suppliers is 1 month.
You may assume that sales and production follow a consistent pattern.
You are required to prepare a statement of Working Capital requirements, a forecast Profit and Loss Account and Balance Sheet of the Company assuming that:
`
Share Capital 15,00,000 8% Debentures 2,00,000 Fixed Assets 13,00,000
Step by Step Answer:
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana