Financial Management 2019 MAY.[14] A proforma cost sheet of a company provides the following particulars : C Elements of Cost Materials 40% Direct Labour 20% Overheads 20% The following further particulars are available :- NC (a) It is proposed to maintain a level of activity of 2,00,000 Units. (b) Selling Price is Rs. 12/- per unit. (c) Raw Materials are expected to remain in stores for an aver- 20 age period of one month. ye be (d) Material will be in process, on average half a month and is as- sumed to be consisting of 100% raw material, wages and overheads. (e) Finished goods are required to be in stock for an average pe- riod of one month. (f) Credit allowed to debtors is two months. (g) Credit allowed by suppliers is one month. You may assume that sales and production follow a consistent pattern. You are required to prepare a Statement of Working Capital requirements, a forecast Profit and Loss Account and Balance Sheet of the company assuming that :- Share Capital 8% Debentures Rs. 15,00,000 2,00,000 Fixed Assets 13,00,000 (Marks 15) Ans. [ Net working capital required Rs. 5,60,000; Net profit Rs. 4,64,000; B/S Total Rs. 22,44,000 ] . Hint. [ (i) Other current assets except stock and debtors Rs. 2,24,000 (bal. figure) (ii) It is assumed that interest on debentures has been paid (iii) Amount of debtors to be shown in B/S Rs. 4,00,000 (Including Profits) ] 122