Question

From the following data provided by M/s. Alpha Ltd. estimate working capital

requirements for the year ended 31st March, 2020.

a) Estimated activity / operations for the year 2,60,000 units (52 weeks).

b) Raw material remains in stock for 2 weeks and production cycle takes 2

weeks.

c) Finished Goods remaining in stock for 2 weeks.

d) 2 weeks credit is allowed by suppliers.

e) 4 weeks credit is allowed to Debtors.

f) Time lag in payment of wages and overheads is 2 weeks each.

g) Cash & Bank Balance to be maintained Rs. 25,000.

h) Selling price per unit is Rs. 15.

i) Analysis of cost per unit as follows.

1. Raw material 33½% of sales.

2. Labour and overheads in the ratio of 6 : 4 per unit.

3. Profit is at Rs. 5 per unit.

Assume that operations are evenly spread throughout the year; Wages and

Overheads accrue similarly. Manufacturing process required feeding of material

fully at the beginning. Degree of work-in-progress is 50%. Debtors are to be

estimated at selling price.​

Answer 1

Answer:

omg ........... OMG............