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

Budget classification on the basis of functions, ON THE BASIS OF FUNCTIONS ...

ON THE BASIS OF FUNCTIONS •Functional / Subsidiary budgets: A subsidiary budget is a budget of income or expenditure appropriate to or the responsibility of functions, like

Estimate the most systematic risk, Yang Su is considering the following inf...

Yang Su is considering the following information on two stocks:                                                                              Rate of Return State of Economy

Explain zero coupon bonds, Explain Zero coupon bonds The bonds that are...

Explain Zero coupon bonds The bonds that are sold at a discount from face value and do not pay any coupon interest over their life are known as Zero coupon bonds. At maturity t

Fixed rate versus floating rate asset backed securities, There are fi...

There are fixed as well as floating rate asset-backed securities. A floating rate asset-backed security is one whose underlying pool consists of loans or receivab

Dividend yield method, Dividend yield method As per this method, the co...

Dividend yield method As per this method, the cost of Equity capital is the discount rate that equates the present value of expected future dividends per share with the net pro

Marketing, How to use integrated promotional mix to achieve marketing objec...

How to use integrated promotional mix to achieve marketing objectives

MM., What are the assumptions of MM(Modigliani Miller) approach?

What are the assumptions of MM(Modigliani Miller) approach?

What does high inflation have on the value of a business, What impact does ...

What impact does high inflation have on the value of a business? Besides causing distortion (as it unequally affects all goods and services), inflation enhances the uncertainty

Give brief introduction to financial management, Introduction to Financial ...

Introduction to Financial Management Companies don't work in a vacuum, isolated from everything else. It transacts andinteracts with the other entities present in economic envi

Specific cost of capital, Specific Cost of Capital When the Cost of ev...

Specific Cost of Capital When the Cost of every source of capital is individually calculated, it is known as Specific Cost of Capital example Cost of equity, cost of debt, etc

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