Question

Nikki and Neeraj have completed their degree in Interior designing and started a
business of designing and producing fumiture items for homes and offices. They

also provide service of layout and décor designing of the client's space.
In their field of business, they were not able to get the raw material and other
inputs on credit from the suppliers and thus had to pay cash on purchase itself.
Since the projects took a long time to complete, payments from clients were not
received on immediate basis, although they had to pay salaries to their workers
regularly. They used some imported raw materials which they had to import in a
large quantity and use as and when needed. On the basis of the given
information about Nikki and Neeraj, Identify and explain any two working capital
requirements of the business by quoting the lines from the above para, (3)
1
answer
I

Answer 1

Answer:

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