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Neel Ltd. had annual sales of 75,000 units, working for 50 weeks in the year. Cost details for the Company are as given below: Particulars
Neel Ltd. had annual sales of 75,000 units, working for 50 weeks in the year. Cost details for the Company are as given below: Particulars Rs. Raw material Per Unit 50 Labour Per Unit 30 Overheads per Unit 20 Total cost Per Unit 100 Profit per Unit 40 Selling price Per Unit 140 Additional Information: (i) The Company has the practice of storing raw materials for 2 weeks requirements. (ii) The wages and other expenses are paid after a lag of 2 weeks. (ii) Further the debtors enjoy a credit of 8 weeks and Company gets a credit of 4 weeks from suppliers. (iv) The processing time is 2 weeks and finished goods inventory is maintained for 4 weeks. From the above information prepare a working capital estimate, allowing for a 10% Contingency. (15) Maximum file size: 5MB, maximum number of files: 1 Files
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