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JBC Ltd . sells goods on a gross profit of 2 5 % . Depreciation of TZS 6 0 , 0 0 0 is considered
JBC Ltd sells goods on a gross profit of Depreciation of TZS is considered as a part of administrative expenses. The following are the annual figures given to you: Sales months credit TZS Materials consumed months credit Wages paid month lag in payment Cash manufacturing expenses month lag in payment Administrative expenses month lag in payment Sales promotion expenses paid quarterly in advance The company keeps one months stock each of raw materials and finished goods. It also keeps TZS in cash. You are required to estimate the working capital requirements of the company on cash cost basis, assuming safety margin
JBC Ltd sells goods on a gross profit of Depreciation of TZS is considered as a part
of administrative expenses. The following are the annual figures given to you:
Sales months credit TZS
Materials consumed months credit
Wages paid month lag in payment
Cash manufacturing expenses month lag in payment
Administrative expenses month lag in payment
Sales promotion expenses paid quarterly in advance
The company keeps one months stock each of raw materials and finished goods. It also keeps
TZS in cash. You are required to estimate the working capital requirements of the
company on cash cost basis, assuming safety margin
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