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kindly find working capital! From the following projections determine the working capital that would be required by United Company Ltd. Annual sales (at two months
kindly find working capital!
From the following projections determine the working capital that would be required by United Company Ltd. Annual sales (at two months credit) Rs 8,000,000 Raw Material consumed(two months credit) Rs 2,000,000 Wages Paid(monthly in arrear) Rs 1,600,000 Manufacturing cash expenses (Cash expenses are Rs paid one month in arrear) 12,00,000 Total admn expenses(paid as incurred) Rs 500,000 Sales promotion expenses(paid quarterly in arrears) Rs. 400,000 The company sells its product at a gross profit of 30% Depreciation forms a part of cost of production It keeps two months stock of raw materials and finished goods and cash of Rs 300,000 Assuming a 20% safety margin, calculate the working capital requirement of the company Ignore work in progress From the following projections determine the working capital that would be required by United Company Ltd. Annual sales (at two months credit) Rs 8,000,000 Raw Material consumed(two months credit) Rs 2,000,000 Wages Paid(monthly in arrear) Rs 1,600,000 Manufacturing cash expenses (Cash expenses are Rs paid one month in arrear) 12,00,000 Total admn expenses(paid as incurred) Rs 500,000 Sales promotion expenses(paid quarterly in arrears) Rs. 400,000 The company sells its product at a gross profit of 30% Depreciation forms a part of cost of production It keeps two months stock of raw materials and finished goods and cash of Rs 300,000 Assuming a 20% safety margin, calculate the working capital requirement of the company Ignore work in progressStep by Step Solution
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