Prepare working capital forecast and projected profit and loss account and balance sheet from the following information: Rs 50, 00,000 15, 00,000 Issued equity share capita Preference share capital Fixed assets 30, 66,667 Production during the previous year was 10, 00,000 units which is expected to be maintained during the current year. The expected ratios of cost to selling price are? 40% 20% Raw material Direct wages Overheads 20% Raw material ordinarily remains in stock for 3 months before production. Every unit of production remains in process for 2 months. Finished goods remain in stock for 3 months. Creditors allow 3 months for payment and debtors are allowed 4 months credit. Estimated minimum cash to be held will be Rs. 2, 00,000. Lag in payment of wages and overheads are expected to be half a month. The selling price will be Rs. 8 per unit. The production is in continuous process and sales are in regular cycle. How does „outsourcing‟ benefit the company?

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1 To compute Working Capital Current Assets Raw materials WorkinProgress Finished goods Debtors and ... View the full answer