Q2. A company wants to get its working capital calculated by you. You are given the following estimates for the year 2020. In addition to that add 10 percent to your figures for contingencies. Calculate the Net Working Capital for the year 2020. Assets and Liabilities Estimated Amount for 2020 Miscellaneous Expenses (1 month )1200 Stocks of finished goods 8000 Stock of work in progress 7500 Rents -- 6 months 1800 Stocks of raw materials 5000 Average credit given Inland sales -- ( 3 weeks credits ) 5000 Export Sales (1.5 weeks credit ) 2500 Wages (1.5 weeks ) 1500 Creditors (1.5 months )1000 Salaries ( 0.5 month )4000 Payment in advance Sundry Expenses 1000

Q2. A company wants to get its working capital calculated by you. You are given the following estimates for the year 2020. In addition to that add 10 percent to your figures for contingencies. Calculate the Net Working Capital for the year 2020. Assets and Liabilities Estimated Amount for 2020 Miscellaneous Expenses (1 month )1200 Stocks of finished goods 8000 Stock of work in progress 7500 Rents -- 6 months 1800 Stocks of raw materials 5000 Average credit given Inland sales -- ( 3 weeks credits ) 5000 Export Sales (1.5 weeks credit ) 2500 Wages (1.5 weeks ) 1500 Creditors (1.5 months )1000 Salaries ( 0.5 month )4000 Payment in advance Sundry Expenses 1000

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 19P

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