4948353802

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Q.P. Codę : 13876

Prajisha Ltd. manufacturos and sales 2,40,000 units of a product in a ycar. The sclling pricc of the product i$ r 50/- per unit and its analysis is :

Raw Materiał

Direct Lubour

Other Direct Cost

General Ovcrhcads

Sclling and Distribution Overheads

40%

20% . < 10%    X)

10%

10%; and the balancc is nr«tt.

Tne following estimates for the ycar 2016 are givcn for your congMbtation :

(a) 'Raw Materials' rentain in stock for 1 month.

£>

Cd) Suppliers of Raw Materials allow 2 month's credit^^

ne total direct costs

(c)    The ' Work-in-Progress' is to be valued at 80% gfcthc

of one tnonth's productior..    Jy

(d)    'Finished Geods' cqual to % month's re^jTrement arc in stock.

(e)    Customers arc allowed 2 months'_^ait.

(0 Time lag ir. payment of wagtąTli one month.

Cg) Both the overheads ar^afd one month in advancc.

' (h) Of the total sales,

(i)    Cash for contfgdncics is maintained at 10% of net working Capital (cxcludini<T^Bh).

(j)    Sund^defctons urc to be valued at sclling price.

(k)    ' Ałfthc activi:ics of production and sales accruc cvcnly throughout the year.

Calculate estimatea working Capital rcquiierr.ent of Prajisha Ltd. for 4§Bycar 2016.

is on credit.