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Ex. 13. Prepare a working capital forecast from the following information. Issued Share Capital 6% Debentures The fixed assets are valued at 3 lakhs. Production
Ex. 13. Prepare a working capital forecast from the following information. Issued Share Capital 6% Debentures The fixed assets are valued at 3 lakhs. Production during the previous year is 1 lakhs units. The same level of activity is intended during the current year. The expected ratios of cost to selling price are : 4,00,000 1,50,000 Raw Materials Direct Wages Overheads 50% 10% 25% The raw materials ordinarily remain in stores for 2 months before production. Every unit of production remains in process for 2 months and is assumed to be consisting of 100% of raw material, wages and overheads. Finished goods remain in the warehouse for 4 months. Credit allowed by creditors is 3 months from the date of delivery of raw materials and credit given to debtors is 3 months from the date of despatch. Selling price is 76 per unit. Both production and sales are in a regular cycle. (Ans. *3,57,500]
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