Question: financial management assignment QUESTION FOUR a) Distinguish between Over Capitalisation (Under trading) and Under Capitalisation invartradino) (3 Marks) b Notes: 1. All raw materials are

financial management assignment QUESTION FOUR a) Distinguish between Over Capitalisation (Under

financial management assignment

QUESTION FOUR a) Distinguish between Over Capitalisation (Under trading) and Under Capitalisation invartradino) (3 Marks) b Notes: 1. All raw materials are input at the start of production process. 2. W-I-P is valued at the entire raw material content and 50% of the labour and overhead elements 3. During the year, production volume is expected to equal sales volume, which is anticipated to be spread evenly over the year. Required: Calculate estimated average working capital finance required assuming a 52 week year. (11 Marks) (14 Marks)

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