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Case Study: Practical Question: You are supplied with the following information in respect of XYZ Ltd . , for the ensuing year: table [
Case Study:
Practical Question:
You are supplied with the following information in respect of XYZ Ltd for the ensuing year:
tableProduction for the year, unitsFinished goods in store, monthsRaw material in store, months' consumptionProduction process, monthCredit allowed by creditors, months
tableCredit given to Debtors, monthsSelling price per unit,RsRaw material, of Selling PriceDirect Wages, of Selling PriceOverheads of Selling Price
There is a regular production and sales cycle and wages and overheads accrue evenly. Wages are paid in the next month of accrual. Material is introduced in the beginning of production cycle.
You are required to find out the working capital requirement of XYZ Ltd
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