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The following information is related to ABC Sdn Bhd, a manufacturing company. On average: (a) Accounts receivable take 2.5 months before payment. (b) Raw materials
The following information is related to ABC Sdn Bhd, a manufacturing company. On average: (a) Accounts receivable take 2.5 months before payment. (b) Raw materials are in inventory for 3 months. (c) Work-in-progress represents 2 months' worth of half produced goods (d) Finished goods represents 1 month's production. (e) Work-in-progress and finished goods are valued at material, labour and variable expense cost. (f) Credit is taken as follows: Required: Compute the working capital requirement for ABC Sdn Bhd assuming the labour force is baid for 50 working weeks a year. The following information is related to ABC Sdn Bhd, a manufacturing company. On average: (a) Accounts receivable take 2.5 months before payment. (b) Raw materials are in inventory for 3 months. (c) Work-in-progress represents 2 months' worth of half produced goods (d) Finished goods represents 1 month's production. (e) Work-in-progress and finished goods are valued at material, labour and variable expense cost. (f) Credit is taken as follows: Required: Compute the working capital requirement for ABC Sdn Bhd assuming the labour force is baid for 50 working weeks a year
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