(a) A proforma cost sheet of a Company provides the following data: Raw material cost per...

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(a) A proforma cost sheet of a Company provides the following data: Raw material cost per unit Direct Labour cost per unit Factory overheads cost per unit (includes depreciation of 18 per unit at budgeted level of activity) Total cost per unit Profit Selling price per unit Following additional information is available: Average raw material in stock Average work-in-process stock (% completion with respect to : 4 weeks 2 weeks 117 49 98 264 36 300 Materials Labour and Overheads Finished goods in stock Credit period allowed to debtors Credit period availed from suppliers Time lag in payment of wages : Net Worth Debt/Equity Interest Rate Operating Profit 80%; 60%) 3 weeks 6 weeks 8 weeks 1 week 2 weeks Time lag in payment of overheads The company sells one-fifth of the output against cash and maintains cash balance of 2,50,000. Required: Prepare a statement showing estimate of working capital needed to finance a budgeted activity level of 87,000 units of production. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly. 8 (b)Find out Financial Leverage from the following data: *50,00,000 3:1 12% 40,00,000 [9+3 marks] (a) A proforma cost sheet of a Company provides the following data: Raw material cost per unit Direct Labour cost per unit Factory overheads cost per unit (includes depreciation of 18 per unit at budgeted level of activity) Total cost per unit Profit Selling price per unit Following additional information is available: Average raw material in stock Average work-in-process stock (% completion with respect to : 4 weeks 2 weeks 117 49 98 264 36 300 Materials Labour and Overheads Finished goods in stock Credit period allowed to debtors Credit period availed from suppliers Time lag in payment of wages : Net Worth Debt/Equity Interest Rate Operating Profit 80%; 60%) 3 weeks 6 weeks 8 weeks 1 week 2 weeks Time lag in payment of overheads The company sells one-fifth of the output against cash and maintains cash balance of 2,50,000. Required: Prepare a statement showing estimate of working capital needed to finance a budgeted activity level of 87,000 units of production. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly. 8 (b)Find out Financial Leverage from the following data: *50,00,000 3:1 12% 40,00,000 [9+3 marks]

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