In the following scenarios, 1) calculate the required working capital finance, 2) When the capital will be ready to be used for further material and labour costs?

Scenario 1

o Material purchased each day for 1,000 paid for in cash.

o Production takes a day. Labour cost 600, other variable costs 400 all paid immediately.

o Products sold at the end of Day 1 for 2,500.

o New production cycle starts at the start of day 2

Scenario 2

o Material purchased each day 1 for 1,000 paid for in cash.

o Production takes a day. Labour cost 600, other variable costs 400 all paid immediately.

o Products sold at the end of each day for 2,500 with payment required in 60 days.

o New production cycle starts at the start of day 2