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V.S.M. Ltd. is engaged in large scale retail business. From the following informations you are required to forecast their working capital requirements. Projected Annual

 

V.S.M. Ltd. is engaged in large scale retail business. From the following informations you are required to forecast their working capital requirements. Projected Annual Sales Rs. 130 lakhs Percentage of net profit on cost of sales 25% Average credit period allowed to debtors 8 weeks. Average credit period allowed by creditors 4 weeks. Average stock carrying 8 weeks (in terms of sales requirements). Add : 10% to computed figures to allow for contingencies.

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