The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 418 Weeks Ago, 4 Days Ago |
| Questions Answered: | 3232 |
| Tutorials Posted: | 3232 |
MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
While preparing a project report on behalf of a client you have collected the following facts. Estimate the net working capital required for that project. Add 10 per cent to your computed figure to allow for contingencies.
                                                                             Amount per unit Rs
Estimated cost per unit of production is:Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â
    Raw material                                                                  42.4
    Direct labour                                                                  15.9
    Overheads (exclusive of depreciation)                           31.8
    Total cost                                                                       90.1
Additional information:
  Selling price                                                   Rs 106 per unit,
                                                                          100,000 units
  Level of activity                                              of production per annum
  Raw material in stock                                     average 4 weeks
  Work-in-progress
  (assume 50%completion stage)                      average 2 weeks
  Finished goods in stock                                 average 4 weeks
  Credit allowed by suppliers                            average 4 weeks
  Credit allowed to debtors                               average 8 weeks
  Lag in payment of wages                               average 1½ weeks
  Cash at bank is expected to be Rs 125,000.
     You may assume that production is carried on evenly throughout the year (52 weeks) and wages and overheads accrue similarly. All sales are on credit basis only.
                                            (M.Com., D.U., adapted)
Â
Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k Y-----------ou -----------for----------- us-----------ing----------- ou-----------r w-----------ebs-----------ite----------- an-----------d a-----------cqu-----------isi-----------tio-----------n o-----------f m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l