Homework Answers
Statement of calculation of net working capital:
| Particulars | Amount(Rs) |
| A. Current assets | |
| 1. Stock of materials for 1 month(1,04,000*80*4/52) | 6,40,000 |
|
2. Work-in-progress for 0.5 month a. Material (1,04,000*80*2/52)*0.50 = 1,60,000 b. Labour (1,04,000*30*2/52)*0.50 = 60,000 c. Overheads (1,04,000*60*2/52)*0.50 = 1,20,000 |
3,40,000 |
| 3. Finished goods for 1 month (1,04,000*170*4/52) | 13,60,000 |
| 4. Debtors for 2 months (78,000*200*8/52) | 24,00,000 |
| 5. Cash in hand and bank | 3,65,000 |
| Total (A) | 51,05,000 |
| B. Current liabilities | |
| 1. Creditors 1 month's purchase of raw materials (1,04,000*80*4/52) | 6,40,000 |
| 2. Labour (1,04,000*30*1.5/52) | 90,000 |
| 3. Overheads (1,04,000*60*4/52) | 4,80,000 |
| Total (B) | 12,10,000 |
| Working capital (A-B) | 38,95,000 |
Notes:
1. One year = 52 weeks
2. Credit sales = 3/4 of 1,04,000 units as cash sales is 1/4.
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