The annual figures of Alpha Ltd are as follows:
(i) Sales at home, at 1 month credit Rs. 12,00,000.
ii) Export at 3 months credit, S.P. 10% below the home price Rs. 5,40,000.
(iii) Materials used, suppliers extend 2 months credit Rs. 4,50,000.
(iv) Wages paid, half month in arreas Rs. 3,60,000.
(v) Manufacturing expenses, paid one month in arreas Rs. 5,40,000.
vi) Depreciation on fixed assets Rs. 60,000.
(vii) Administrative expenses, paid one month in arrear Rs. 1,20,000.
(viii) Sales promotion expenses, payable quarterly in advance Rs. 60,000.
Alpha Ltd. sells goods in the domestic market on a gross profit of 25%. It keeps one month stock of raw materials as well as finished product and believes in keeping Rs. 1,00,000 available to it. You are required to calculate the working capital requirement of the company, assuming 15% safety margin.
| Particular | Rs. |
| Home debtor 340000 x 1/12 | 100000 |
| Export debtor 34000 x 3/12 | 135000 |
| sales promation expenses (per and ) 60000x 2/12 | 15000 |
| creditors for material 450000 x ___ ________ ________ _____ ________ __________. ___ _______ _________ _________ ________ ___ _____. ___ ______ ____ ______ _____ ______ ____ _______ _____ _______ _______ ________. ____ ______ __________ ______ ____ ___ ____ _____ ________ _______ __________ ____. _______ _______ _________ _____ _______ _____ ___ ______ __________ _____ _______ _____. _______ ________ __________ ___ ____. ___ ______ _______ ____ ___ _________ ______ ___ _____ _______ _______. _________ __________ ________ _________. IGNOU ACADEMY Your IGNOU journey, made easier.
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