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

Total cost of operating the business, Joe's ice cream stroe has to decide w...

Joe's ice cream stroe has to decide whether to shut down this winter or stay open. His projected revenue is $1,200 per week. He has fixed costs (Mortgage, taxes, insurance, etc.) t

Market value ratios, Market Value Ratios Price-Earnings Ratio ...

Market Value Ratios Price-Earnings Ratio P/E ratio shows how much investors are willing to pay for earnings per share of the company. Market-to-Bo

Discuss the pros and cons of financing in unhedged, You have the following ...

You have the following information about rates in London for Eurocurrency loans of one-year duration, the exchange rate between the USD and euros, the currency in which you want fi

Operating cycle, Define operating cycle and long and short operating cycle?...

Define operating cycle and long and short operating cycle? Use of operating cycle? Can someone give me assistance on these questions??

Explin the triangular arbitrage, What is triangular arbitrage?  What is a c...

What is triangular arbitrage?  What is a condition that will give increase to a triangular arbitrage opportunity? Answer:  Triangular arbitrage is the method of trading out of th

Display the position explicitly, Q. Display the position explicitly Ex...

Q. Display the position explicitly Example: I borrow 7800000 HKD at time t = t 0 at an interest rate r t0 . After one year I pay back 7800000(1 + rt o ). At

Deficiency in operation, Deficiency in Operation - This exists when a prope...

Deficiency in Operation - This exists when a properly designed control doesn't operate as designed or when person performing the control doesn't possess the necessary authority or

Define and discuss indirect world systematic risk, Define and discuss indir...

Define and discuss indirect world systematic risk. The indirect world systematic risk can be illustrated as the covariance among a nontradable asset and the world market portfo

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