X Ltd. sells good at a Gross Profit of 20%. It includes depreciation as a cost of
Question:
● X Ltd. sells good at a Gross Profit of 20%. It includes depreciation as a cost of production. Further information are as follows:
Annual figures (` ’000)
Sales at 3 months credit 9,600 Material usage at 2 months credit 240 Lag in payment of wages 1 month 360 Lag in payment of manufacturing expenses (in cash) 2 months 4,800 Lag in payment of administrative expenses 1 month 120 Sales promotion expenses paid in advance (on half-yearly basis) 72 Tax liability to be paid in four equal instalments of which one falls in next year 120 The company maintains a month’s stock of raw materials and finished goods. Cash in hand and at bank is `1,50,000. Determine the Working Capital requirement.
Step by Step Answer:
Financial Management
ISBN: 9789352605606
1st Edition
Authors: Swapan Sarkar, Bappaditya Biswas, Samyabrata Das, Ashish Kumar Sana