Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are required to prepare a statement showing the working capital required to finance the level of activity of 1 8 0 0 0 units
You are required to prepare a statement showing the working capital required to finance the level of activity of units per year from the following information:
Particulars Rs
Raw material per unit
Direct Labor per Unit
Overheads per unit
Total Cost per unit
Profit per unit
Selling price per unit
Additional Information:
Raw material is in stock on average for months
Materials are in process on an average for half a month
Finished goods are in stock on an average for two months
Credit allowed by creditors is two months in respect of raw materials supplied.
Credit allowed to debtors is three months. Debtors are calculated on the selling price.
Lag in payment of wages in half a month. Cash on hand and at the bank is expected to be Rs
You are informed that all activities are evenly spread out during the year.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started