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EXERCISE (Working Capital Management) A. ABC is a company that produces shoes has 18 working days and the company is able to produce as
EXERCISE (Working Capital Management) A. ABC is a company that produces shoes has 18 working days and the company is able to produce as many as 75 units of shoes. This company using crocodile leather as the main raw material and company spend about $ 15.000/unit product, thus people work with fee $ 7.500/hour with BOP annual per month is $ 430.000 and sales cost is $ 1.550.000, beside using main raw material company also consider use indirect material with nominal $ 6.000/unit. The company sets a minimum cash amount of $ 650.0000. ABC Company purchase raw materials and supporting materials for production by giving down payments to suppliers 2 x 24 hours before the goods are received. Meanwhile, the time required for the production process is 72 hours. The finished shoe is stored in the warehouse for 5 days, and sales on credit are made for 6 days. Q: Calculate the ABC company's working capital requirements B. The average working capital bound period PT XYZ are stored in the warehouse for 8 days receivables collection time of 17 days. And Average daily cash disbursements purchase of $ 700 merchandise employee wages of $ 55 general & administrative costs $ 12,5 selling costs of $ 25. minimum cash is set at $ 150 Q: Calculate amount of working capital required of PT.XYZ
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