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

What is performance appraisal - cost of capital, What is Performance apprai...

What is Performance appraisal - cost of capital Performance appraisal further, cost of capital framework can be used to evaluate financial performance of top management. I

Explain about deferred payment, Q. Explain about Deferred Payment? supp...

Q. Explain about Deferred Payment? suppose a person take a loan of a specified amount at a given rate of the interest. he wants to repay this loan together with the interest in

Case let, This case has been framed in order to test the skills in evaluati...

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large manufacturer of petroleum and

Issuing procedure - t-bills, Issuing Procedure Treasury bills are sold ...

Issuing Procedure Treasury bills are sold using the auction procedure. The Treasury entertains both competitive and non-competitive tenders for T-Bills. Government securities f

Minimax decision, How to compare minimax and maximin with figures and comme...

How to compare minimax and maximin with figures and commentary ?

Function of the investment decision, Q. Function of the Investment decision...

Q. Function of the Investment decision? Investment decision related of the selection of the fixed assets. the assets can be acquired fall into two board groups i) long terms

Weighted average cost of capital of firm, Weighted average cost of capital ...

Weighted average cost of capital of Firm: Use the following information to answer the questions. Security Beta Expected retur

Average Return, How do I calculate the average return for T over a five yea...

How do I calculate the average return for T over a five year period?

Types of mortgages, Types of Mortgages 1. Traditional...

Types of Mortgages 1. Traditional Mortgages 2. Non -  Traditional Mortgages 3.  Graduated-Payment Mortgages (GPMs) 4.  Pledged-Account Mortg

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