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Q2. A company wants to get its working capital calculated by you. You are given the following estimates for the year 2020. In addition to that add 10 percent to your figures for contingencies. Calculate the Net Working Capital  for the year 2020. Assets and Liabilities Estimated Amount for 2020 Miscellaneous Expenses (1 month  )1200 Stocks of finished goods 8000 Stock of work in progress 7500 Rents -- 6 months 1800 Stocks of raw materials 5000 Average credit given Inland sales -- ( 3 weeks credits ) 5000 Export Sales  (1.5 weeks credit ) 2500 Wages (1.5 weeks ) 1500 Creditors  (1.5 months  )1000 Salaries  ( 0.5 month  )4000 Payment in advance Sundry Expenses 1000

Q2. A company wants to get its working capital calculated by you. You are given the following estimates for the year 2020. In addition to that add 10 percent to your figures for contingencies. Calculate the Net Working Capital  for the year 2020. Assets and Liabilities Estimated Amount for 2020 Miscellaneous Expenses (1 month  )1200 Stocks of finished goods 8000 Stock of work in progress 7500 Rents -- 6 months 1800 Stocks of raw materials 5000 Average credit given Inland sales -- ( 3 weeks credits ) 5000 Export Sales  (1.5 weeks credit ) 2500 Wages (1.5 weeks ) 1500 Creditors  (1.5 months  )1000 Salaries  ( 0.5 month  )4000 Payment in advance Sundry Expenses 1000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q2. A company wants to get its working capital calculated by you. You are given the following estimates for the year 2020. In addition to that add 10 percent to your figures for contingencies. Calculate the Net Working Capital  for the year 2020.
Assets and Liabilities Estimated Amount for 2020
Miscellaneous Expenses (1 month  )1200
Stocks of finished goods 8000
Stock of work in progress 7500

Rents -- 6 months 1800
Stocks of raw materials 5000
Average credit given
Inland sales -- ( 3 weeks credits ) 5000
Export Sales  (1.5 weeks credit ) 2500
Wages (1.5 weeks ) 1500
Creditors  (1.5 months  )1000
Salaries  ( 0.5 month  )4000
Payment in advance
Sundry Expenses 1000

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