Level of Activity = 1,040,000 units Selling Price = PKR 20 per unit Raw Material Cost =
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Question:
- 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
- Calculate Gross working capital , Net working capital and length of the Working Capital Cycle?
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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