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

Differences between indirect costs and direct costs, a) Variable costs: Rem...

a) Variable costs: Remuneration of flight attendants, Meals and drinks onboard, Fuel. Fixed costs: promotions and Advertising, Remuneration of administrative staff and Airport c

Partial correlation coefficients , In multiple correlation equations we are...

In multiple correlation equations we are often interested in finding out how much of the variation in the dependent variable is explained by one independent variable if all the oth

Convexity measure , We can measure the convexity with the help of following...

We can measure the convexity with the help of following formula:                                                                              ...Eq. (4) Where,          Δ

Explain dual currency bond, Explain Dual Currency Bond A dual currency ...

Explain Dual Currency Bond A dual currency bond is a straight fixed-rate bond that is issued in one currency and pays coupon interest in that similar currency.  At maturity, th

Compare and contrast sources of conflict, The data on sales performance in ...

The data on sales performance in LS Company has shown a important downward trend over the last year. The Marketing and Sales Department is blaming the Finance Department for the po

Liabilities, Liabilities The company must take into account the nature ...

Liabilities The company must take into account the nature of its liabilities as well as its solvency position. Cash Flows: Besides the investment yields, money flows as paid

Floating rate notes (frns), Floating Rate Notes (FRNs): When interest r...

Floating Rate Notes (FRNs): When interest rates are high and the general outlook is either stable or indicating the possibility of a downward trend in return, then an investor

Call and refunding provisions, Call provision is the right of the iss...

Call provision is the right of the issuer to call back and retire the issued bonds before the maturity date. The issuer may call the bond and retire the bond by paying

Leverage, What are the importance of leverage on a small scale firm?

What are the importance of leverage on a small scale firm?

Players in primary market, PLAYERS IN THE PRIMARY MARKET Some important...

PLAYERS IN THE PRIMARY MARKET Some important players in the primary market are: Merchant Bankers When a company approaches the public for funds, merchant bankers manage

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