You are required to prepare a statement showing the working capital required to finance a level of activity of 18000 units from tile following information: Particulars Amount per unit (Rs.) Raw Materials 12 Direct Labour 3 Overheads 9 Total Cost 24 Profit 6 Selling Price 30 (a) Raw materials are in stock on an average for 2 months. (b) Materials are in process on an average for 1/2 a month. (3) Finished goods are in stock on an average for 2 months. (d) Credit allowed by creditors is 2 months. (e) Credit allowed to debtors is 3 months. (f) Lag in payment of wages is 1/2 a month. (g) Cash on hand and at bank is expected to be Rs. 7000.
You are required to prepare a statement showing the working capital required to finance a level of activity of 18000 units from tile following information: Particulars Amount per unit (Rs.) Raw Materials 12 Direct Labour 3 Overheads 9 Total Cost 24 Profit 6 Selling Price 30 (a) Raw materials are in stock on an average for 2 months. (b) Materials are in process on an average for 1/2 a month. (3) Finished goods are in stock on an average for 2 months. (d) Credit allowed by creditors is 2 months. (e) Credit allowed to debtors is 3 months. (f) Lag in payment of wages is 1/2 a month. (g) Cash on hand and at bank is expected to be Rs. 7000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You are required to prepare a statement showing the working capital required to finance a level of activity of 18000 units from tile following information: Particulars Amount per unit (Rs.) Raw Materials 12 Direct Labour 3 Overheads 9 Total Cost 24 Profit 6 Selling Price 30 (a) Raw materials are in stock on an average for 2 months. (b) Materials are in process on an average for 1/2 a month. (3) Finished goods are in stock on an average for 2 months. (d) Credit allowed by creditors is 2 months. (e) Credit allowed to debtors is 3 months. (f) Lag in payment of wages is 1/2 a month. (g) Cash on hand and at bank is expected to be Rs. 7000.
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