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Q. Working capital cycle?
In a manufacturing concern the working capital cycle is start with the purchase of the raw material and ends with the realization of the cash from the sale of the finish goods this cycle material ends with the realization of the cash from the sale of the finish products . this cycle involves the purchase of raw material and the store its convert in the stock of the finish goods through the work in the progress with the progressive increment of labor and the service costs, conversation of finish goods into the sell debtors and receivable and the realization of the cash and this cycle continuously again to the cash to the purchase of the material the speeds with which the working capital is complete one cycle determine the requirement of the working capital requirement of working capital longer the period of the cycle the large of the requirement of the working capital.
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