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Under this method, approximated profit is calculated depends on transactions of the ensuing period. Afterward, decrease or increase in working capital is determined adjusting the estimated profit through cash inflows and cash outflows. This is like cash flow statement. Some banks in India use forms for calculating working capital in this method. A specimen of such a form is specified below.
Computation of Working Capital
Rs.
Net Income
..............
Add: (i) Non-cash Items
...............
Working Capital Provided Operations
... ... ... ...
Add: (ii) Cash inflow Items
Less: Cash Outflow items
.
Net Changes in Working Capital
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Ask question #MinimumYears Purchase Costs Running cost discount factor 8% Running cost Savings PVS 0 -7000 -7000 1 2000 0.926 1852 5556 3704 2 2500 0.857 2142.5 5999 3856.5
what is Computerized Processing Systems
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