Statement used in working capital requirement, Financial Management

Assignment Help:

• Debtors :-

Working Capital tied up in debtors must be estimated on the basis of cost of sales (excluding depreciation):
[Cost of goods produces (that is raw materials + wages manufacturing, administrative & selling overhead)] * [Average debt collection period (weeks / months)]/[(52 weeks/ 12 months)]= ---------

• Cash and Bank Balance :-

(That is minimum cash balance required to be maintained = ----
----
Total Current Assets (A) _______

Less: Current Liabilities ----

• Trade Creditors :-

[Credit period allowed by creditors Of raw material] *[ Cost of yearly consumption (weeks/ months) / (52 weeks/ 12 months)] m= --------

• Wages :-

Yearly wages * [Average time lag in payment of wages (weeks/ months)/ (52 weeks/ 12 months)]

• Overheads:-

Yearly Overheads (other Than Depreciation) * [Average time lag in payment of overheads (weeks/ months) / (52 weeks/ 12 months)] =

Total Current Liabilities (B) --------------

Working Capital (A) - (B) --------------

Add: Provision for Contingencies --------------

Estimated Working Capital Requirement --------------


Related Discussions:- Statement used in working capital requirement

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

Explain composite currency bond, Explain Composite Currency Bond Compos...

Explain Composite Currency Bond Composite currency bonds are denominated in a currency basket, like SDRs or ECUs, in place of a single currency.They are often known as currency

Weighted average cost of capital, Q. Weighted Average cost of Capital? ...

Q. Weighted Average cost of Capital? When the company capital structure is made from equity share capital , debenture and Preference share capital , then we calculated the comb

Calculate the annual interest , Reston, Inc., has asked your corporation, P...

Reston, Inc., has asked your corporation, Pruro, Inc., for financial assistance. As a long-time customer of Reston, your firm has decided to give that assistance. The question you

Policy conflicts in debt and monetary management, Policy Conflicts in Debt ...

Policy Conflicts in Debt and Monetary Management: Co-ordination of operations is important so as to avoid differences in the policies of cash and debt management of the governm

Index amortizing notes (ina), In the Index Amortizing note, the princ...

In the Index Amortizing note, the principal is repaid according to an amortization schedule linked to a specific reference rate. It is structured in such a manner

Show the accountable plan, Q. Show the Accountable Plan? Accountable P...

Q. Show the Accountable Plan? Accountable Plan - An accountable plan is any reimbursement or other expense allowancearrangement of an employer which meets all of the subseque

Consistency in accounting, Consistency - ACCOUNTING postulate that stipulat...

Consistency - ACCOUNTING postulate that stipulates, except as otherwise noted in FINANCIAL STATEMENT, same accounting procedures and policies have been followed from period to peri

Average standard hook cycle - indirect cost, Following is the information f...

Following is the information furnished by a private port for investing Rs. 10 crore in a 20 Tonne Gantry Crane. The entire funding is from a loan carrying an interest of 11%. The l

Investment opportunities in capital budgeting process, Briefly examine the ...

Briefly examine the significance of identification of investment opportunities in capital budgeting process

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