The days of coverage for the following items in your project are given below

Items Minimum days of coverage The annual requirements are

2010 2011

Cash 60 days Br.40,000 Br.45,000

Raw materials 20 days 60,000 70,000

Accounts Receivable 35 days 100,000 120,000

Work in process 10 days 15,000 17,000

Finished Goods 40 days 80,000 100,000

Accounts Payable 50 days 200,000 90,000

• The total net working capital for the construction period is Br.50,000

Required:

1) Compute the Net Working Capital requirements of each period

2) Compute the increase in Net Working Capital for each period