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Answer correctly and proper with in 1 hour will give you posistive feedback. The board of Directors of N Ltd have approached you to investigate
Answer correctly and proper with in 1 hour will give you posistive feedback.
The board of Directors of N Ltd have approached you to investigate the Working capital requirements of their firm. A proforma cost sheet of the firm provides the detail as shown below: The following additional information is also available: i. Average raw material in stock: One month ii. Average materials in process: 2 Weeks iii. Finished good in stock :one month iv. Credit allowed by suppliers : one month v. Time lag in payment from debtors : 2 months vi. Average time lag in payment of wages is 1.5 weeks vii. Average time lag in payment of overheads one month viii. Cash balance Rs. 60,000 You are required to determine the net working capital (NWC) required to finance a level of activity of 156000 units of output. Production is carried out evenly throughout the year and wages and overheads occur similarly. A time of 4 weeks =1 month is considered here. ( 48 Weeks annually) Step by Step Solution
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