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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
Absolute liquid ratio - Liquidity ratios Although receivables debtors and bills receivable are usually more liquid than inventories yet there may be doubts regarding their rea
Explain about Programmed budget It having expects revenues and cost of various products or projects that are termed as the main programmers of the firm. Such a budget can be pr
opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio
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Susan works in a real estate office that is equipped with up-to-date copiers, scanners, and printers. She is frequently the only employee working in the office in the evenings and
Optimum Solution From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be
QUEUING THEORY When limited facilities fail/delays to satisfy demands made upon them, problems occur which generate queues or waiting lines. Illustrations are: • Customers
what is cost bookkeeping
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explain briefly variable cost, fixed cost and semi- variable in the production cost of a productor service, giving example for each
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