Question: 14. From the following data provided by Q Ltd., compute the Working Capital requirement: Activity level: 3,00,000 units of output p.a. Selling price per unit:
14. From the following data provided by Q Ltd., compute the Working Capital requirement:
Activity level: 3,00,000 units of output p.a.
Selling price per unit: `50 Per unit raw material cost: `20 Per unit labour cost: `5 Per unit overhead cost: `15 Raw materials in store: 2 months Processing period: ½ month Finished goods in store: 1 month Credit allowed to debtors: 2 months Credit allowed by creditors: 1 month Expected minimum cash balance: `25,000 Production is carried on evenly during the year.
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