1. Prepare a columnar statement to determine the Working Capital Requirement from the following information:

2. From the following information, ascertain the Working Capital Requirement:

3. With the following information, prepare a statement showing the Working Capital required to finance a level of activity of 10,400 units per annum:

a. Selling Price per unit is Rs. 5.

b. Expected Ratio of cost to Selling Price:

Raw Materials 40%

Direct Wages 10%

Overhead 30%Profi t 20%

c. Raw materials are expected to remain in the store for an average period of 2 months before being issued for production, and materials are in process on an average period of 6 weeks.

d. Finished goods will stay in the store approximately for 6 weeks before getting dispatched to customers.

e. Credit allowed to debtors is for a period of 2 months.

f. Credit allowed by creditors is for a period of 2 months.

g. Lag in payment of wages and overheads are for a period of 2 weeks each.

h. Cash in hand and at bank is expected to be Rs. 10,000.

Answer rating: 100% (QA)

1 To determine the Working Capital Requirement we need additional information Please provide details such as current assets current liabilities and any other relevant information related to the workin... View the full answer