Amman Ltd. is a manufacturing company that produces peper cups and plates in Nuwa. The company was able to sustain a reasonable amount of sales in the last two quarters despite the pandemic ansis durng the last year. However, the company has faced some senous bquidity problems due to delayed payment by the customers and lower sales in the first two quarters Hence, the company is seriously thinking about revising its working capital standards by considering the changes in the market. The finarnce manager of the company is seeking your help in assessing the Average payment period from the following financial data The company had an opening stock of OMR 20,000 during the last year and made a total purchase of 41.000 OMR. The company has retumed OMR 3000 worth material due to quality issues During the last year, the business has paid OMR 6000 as wages and OMR 8000 as salaries. The company sold goods for a total amournt of OMR 70,000 of which OMR 30,000 sales was on cash bass Average detitors during the last year was 15,000 OMR, average creditors were 15,000 OMR and dosing inventory was OMR 26,000. Average payment period of Amman Ltd. from the following? O a. 121.67 O b. 128.56 O. 132.56 O d. 110.76

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.