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From the following information, prepare a statement showing the Average Working Capital requirements: Budget sales - Rs. 7,80,000 Analysis of cost of each unit: Rs.
From the following information, prepare a statement showing the
Average Working Capital requirements:
Budget sales - Rs. 7,80,000
Analysis of cost of each unit: Rs.
Raw materials 4.50
Labour 2.50
Overheads 2.00
Profit 1.00
Sale price 10.00
It is estimated that:
i. Pending use, raw materials are carried in stock for three weeks
and finished products for two weeks.
ii. Factory processing will take three weeks.
iii. Suppliers will give four weeks credit and customers required six
weeks credit
iv. Cash on hand is estimated to be Rs. 25,000
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