Cost sheet, Financial Management

Assignment Help:

A proforma cost sheet of a company provides the following data:

 

RO

Cost (per unit)

 

   Raw materials

52.0

   Direct Labour

19.5

   Overheads

39.0

Total Cost (per unit)

110.5

Profit

19.5

Selling Price

130.0

The following is the additional information available:

Average raw material in stock              :           One Month

Average materials in process               :           Half Month

Credit allowed by suppliers                  :           One Month

Credit allowed to debtors                    :           Two Month

Time lag in payment of wages             :           10 Days

Overhead                                         :           One Month

One fourth of sales are cash basis.

Cash balance in expected to be RO 120,000/-.

(Month = 30 Days)

You are requested to prepare a statement showing the working capital needed to finance a level of activity of 70,000 units of output. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly.

 


Related Discussions:- Cost sheet

Evaluate earnings per share, This question tested earnings per share and P/...

This question tested earnings per share and P/E ratio. The widely held of the marks were for calculations and a key test was the distinction between what transactions affect basic

How does accounts receivable factoring work, How does accounts receivable f...

How does accounts receivable factoring work?  What are the benefits to the two parties involved?  What are the risks? Factoring is when one firm trade accounts receivable (AR)

Caselets, caselets of bajaj electronics

caselets of bajaj electronics

The visitors perceive to justify the renovation, Lincoln Park Zoo in Chicag...

Lincoln Park Zoo in Chicago is considering a renovation that will improve some physical facilities at a cost of $1,800,000. Addition of new species will cost another $310,000. Addi

Define policy formulation - accounts receivable management, Q. Define Polic...

Q. Define Policy formulation - accounts receivable management This is concerned with set up the framework within which management of accounts receivable in an individual compan

Operating cycle, how to write a vegetation operating cycle

how to write a vegetation operating cycle

Define the meaning of rate of return on investment, Define the meaning of r...

Define the meaning of rate of return on investment An investment project which provides positive NPV when its cash flows are discounted by cost of capital makes a net contribut

Embedded options, Embedded Options  is a provision in the ind...

Embedded Options  is a provision in the indenture that gives the issuer and/or the bondholder an option to take action against the other party.

Importance of commodity finance and sensitive commodities, Question 1 Desc...

Question 1 Describe the importance of commodity finance and sensitive commodities Question 2 Securities purchased by a bank for investment purposes are referred to as seconda

Compute the expected stock price, 1. Using ratio analysis, compare your fif...

1. Using ratio analysis, compare your fifth year to the current year and discuss. 2. Compute the expected stock price at the end of the fifth year. Assume your stockholders hav

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd