How much would be the net margin impact (assuming 50% of revenue is cost of sales) and net working capital for the month of Apr 19 (assuming cash is not collected or paid for any of the invoice).
How much would be the net margin impact (assuming 50% of revenue is cost of sales) and net working capital for the month of Apr 19 (assuming cash is not collected or paid for any of the invoice).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
H2
![10. ABC Ltd. has invoiced Rs. 100,000 to the customer PQR Ltd in advance for 10 months in Apr 19 of
which
services worth Rs. 20,000 have been delivered. Another invoice for services worth Rs. 30,000
delivered
to XYZ Itd. is missed for invoicing.
On the supplier side, KYD Ltd has raised a service order of Rs. 70,000 worth to ABC Ltd of which
an invoice
amounting to Rs. 30,000 has been received in advance.
How much would be the net margin impact (assuming 50% of revenue is cost of sales) and net
working capital
for the month of Apr19 (assuming cash is not collected or paid for any of the invoice).
a) Margin Rs. 30,000 and Net Working Capital 50,000
Ob) Margin Rs. 25,000 and Net Working Capital 50,000
Oc) Margin Rs. 10,000 and Net Working Capital 50,000
d) Margin Rs. 25,000 and Net Working Capital 30,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1270ef52-9144-4cd9-a57a-f37482813406%2F8aa70d17-9ee5-41ff-a640-595e4aecc1f0%2Fycklm5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10. ABC Ltd. has invoiced Rs. 100,000 to the customer PQR Ltd in advance for 10 months in Apr 19 of
which
services worth Rs. 20,000 have been delivered. Another invoice for services worth Rs. 30,000
delivered
to XYZ Itd. is missed for invoicing.
On the supplier side, KYD Ltd has raised a service order of Rs. 70,000 worth to ABC Ltd of which
an invoice
amounting to Rs. 30,000 has been received in advance.
How much would be the net margin impact (assuming 50% of revenue is cost of sales) and net
working capital
for the month of Apr19 (assuming cash is not collected or paid for any of the invoice).
a) Margin Rs. 30,000 and Net Working Capital 50,000
Ob) Margin Rs. 25,000 and Net Working Capital 50,000
Oc) Margin Rs. 10,000 and Net Working Capital 50,000
d) Margin Rs. 25,000 and Net Working Capital 30,000
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