Calculate Gross working capital , Net working capital and length of the Working Capital Cycle? Level of

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Calculate Gross working capital , Net working capital and length of the Working Capital Cycle?

Level of Activity = 1,040,000 units

Selling Price = PKR 20 per unit

Raw Material Cost = PKR 8 per unit

Labor Cost = PKR 3 per unit

Overhead Cost = PKR 6 per unit

Raw Material in Stock = 4 weeks

Processing Time = 2 weeks

Finished Goods in stock = 3 weeks

Credit received from customer is 8 weeks

Credit received from supplier is 6 weeks

Delay in payment of wages is 4 weeks

Delay in payment of overheads is 5 weeks

Prepaid Expenses = PKR 20,000

Outstanding Expenses = PKR 50,000

Contingency is 5% of Gross Working Capital

Related Book For answer-question

Entrepreneurship & Small Business Management

ISBN: 978-0133767186

2nd edition

Authors: Steve Mariotti, Caroline Glackin

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Posted Date: Jul 15, 2020 04:46 AM

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Calculate Gross working capital , Net working capital and length of the Working Capital Cycle? Level of

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1 Estimated current assets Receivables 104000020852 3200000 Raw m... View the full answer

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