The position of sales revenue, current assets and current liabilities of a firm during 2020 and 2021 is given below: _____________________________________________________ 2020 2021 Sales revenue 600,000 660,000 _____________________________________________________ Cash 8 000 8 800 Trade Receivables 70 000 91 000 Stock 80 000 96 000 Total current assets 158 000 195 800 Trade Payables 40 000 48 000 Net working capital 118 000 147 800 _____________________________________________________ The expected increase in sale from 2021 to 2022 is 20%. However, the growth in each of the current assets and current liabilities is expected to double in 2022 from the growth during 2020 to 2021. Required A) Calculate the growth in current assets and current liabilities in 2021 from 2020 and in 2022 from 2021? b) Calculate the Estimate requirement of additional working capital for 2022?
The position of sales revenue, current assets and current liabilities of a firm during 2020 and 2021 is given below:
_____________________________________________________
2020 2021
Sales revenue 600,000 660,000
_____________________________________________________
Cash 8 000 8 800
Trade Receivables 70 000 91 000
Stock 80 000 96 000
Total current assets 158 000 195 800
Trade Payables 40 000 48 000
Net working capital 118 000 147 800
_____________________________________________________
The expected increase in sale from 2021 to 2022 is 20%. However, the growth in each of the current assets and current liabilities is expected to double in 2022 from the growth during 2020 to 2021.
Required
A) Calculate the growth in current assets and current liabilities in 2021 from 2020 and in 2022 from 2021?
b) Calculate the Estimate requirement of additional working capital for 2022?
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