Statement showing working capital requirement, Financial Management

Assignment Help:

Current Assets:-

  • Stock of Raw-Materials :-

[(Cost of yearly consumption Of raw material)*{ (Average Inventory holding period (weeks/months))}/(52 weeks / 12 months)]=    ------------------------

  • Work in Progress :-

[(Cost of yearly consumption Of raw material)* {(Average time span of work in process  (weeks/months))} /(52 weeks/ 12 months)]

+ Yearly wages *(50/ 100)*{(Average time span of work in process (weeks/months)/ (52 weeks/ 12 months)}

+ Yearly manufacturing and administrative overheads (excluding dep.)

[*50/100 *{Average time span of work in process (weeks/ months) / (52weeks/ 12 months)}] = ----------

  • Stock of Finished Goods :-

Cost of goods produced (that is yearly cost of raw materials +Wages + manufacturing & administrative overheads (excluding depreciation)

*Average finished goods holding period (weeks / months)/ (52 weeks/ 12 months) = -------

 


Related Discussions:- Statement showing working capital requirement

State about the nick leeson and barings, Nick Leeson and Barings Leeson...

Nick Leeson and Barings Leeson was the trader who managed to bring about the collapse of Barings Bank in 1995. The main reason he was able to do this was because there was a ce

Explain the concept of competitive advantage, There are dissimilar views on...

There are dissimilar views on how an organisation can gain competitive advantage, but contemporary research is placing greater emphasis on the resource-based view. Expl

Calculate the cost of capital of organization, The following particulars re...

The following particulars relate to ABC Ltd. at the end of 2008: (i)  Rs. 500,000 equity shares of Rs. 10 each. Present dividend per share is Rs. 15; Market price Rs. 100 per sh

Weak form level of efficiency-forms of efficiency, Weak form level of effic...

Weak form level of efficiency This level states that share prices fully reflect information in historic share price movement and patterns (past information/historic information

Liquidity, The capability of an asset to be converted into cash as quickly ...

The capability of an asset to be converted into cash as quickly as possible without any discount to its value.

Do you agree or disagree with this statement, Companies with rapidly growin...

Companies with rapidly growing levels of sales do not need to worry about raising funds from outside the firm.  Do you agree or disagree with this statement?  Explain. Disagree

Structure and participation of hedge funds, Structure and Participation of ...

Structure and Participation of Hedge Funds: The typical structure for a Hedge Fund is to facilitate the tax concerns of investors and fund managers. Basically, there are two or

Interest rate risk, Bonds are usually recognized by yields, which cha...

Bonds are usually recognized by yields, which change from time to time owing to many market forces. There exists an inverse relationship between the bond price and the

Monetary policy, Monetary Policy The Federal Reserve's goal is to regul...

Monetary Policy The Federal Reserve's goal is to regulate the growth of the monetary aggregates to ensure sufficient credit expansion to foster economic growth, without inflati

Method to find seasonal variation in time series, Method to Identify the Co...

Method to Identify the Component of Seasonal Variation in a Time Series This technique is called as Ratio to Moving Average Method. In this technique, we construct an index wh

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