Question: please help From the following information prepare a statement showing the estimated working capital requirement: (1) Projected annual sales 36,000 units (2) Analysis of sales

please help From the following information prepare a statement showing the estimatedplease help

From the following information prepare a statement showing the estimated working capital requirement: (1) Projected annual sales 36,000 units (2) Analysis of sales Raw materials Rs. 6 per unit Labour Rs. 4 per unit Overhead Rs. 3 per unit Profit Rs. 2 per unit Selling price Rs. 15 per unit (3) Additional Information: (a) Raw material in stock 1 month (6) Production process 2 months (C) Finished goods in store 3 months (d) Credit allowed to debtors 4 months (e) Credit allowed by suppliers 2 months (f) Monthly wages and expenses are paid twice on 1" and 164 of each month. (g) Production is carried on evenly during the year and expenses and wages accrue similarly. (h) Cash is to be kept at 10% of the net working capital. Only Hand Written or on Document accepted, No Excel work Accepted, And Do it on ASAP Basis, With Workings

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!