financial management assignment

QUESTION FOUR a) Distinguish between Over Capitalisation (Under trading) and Under Capitalisation invartradino) (3 Marks) b Notes: 1. All raw materials are input at the start of production process. 2. W-I-P is valued at the entire raw material content and 50% of the labour and overhead elements 3. During the year, production volume is expected to equal sales volume, which is anticipated to be spread evenly over the year. Required: Calculate estimated average working capital finance required assuming a 52 week year. (11 Marks) (14 Marks)