Q3)

• Level of Activity = 1,040,000 units
• Selling Price = PKR 20 per unit
• Raw Material Cost = PKR 8 per unit
• Labor Cost = PKR 3 per unit
• Overhead Cost = PKR 6 per unit
• Raw Material in Stock = 4 weeks
• Processing Time = 2 weeks
• Finished Goods in stock = 3 weeks
• Credit received from customer is 8 weeks
• Credit received from supplier is 6 weeks
• Delay in payment of wages is 4 weeks
• Delay in payment of overheads is 5 weeks
• Prepaid Expenses = PKR 20,000
• Outstanding Expenses = PKR 50,000
• Contingency is 5% of Gross Working Capital
• Calculate Gross working capital , Net working capital and length of the Working Capital Cycle?