Q1
Current assets
Finished goods stock
Raw materials and stores stocks
5000
8000
Debtors
Inland
Export
36000
2250
Sundry exp paid in advance
2000
Investment in CA
53250
Current liabilities
Wages outstanding
Stocks & materials
Rent and royalties
Clerical staff
Manager
Misc exp
Estimated current liabilities
7500
6000
5000
2600
200
6000
27300
Net working capital
Add: provision for contingencies
Net working capital reqd
25950
2595
28545
Q2
Raw material inventory holding period
WIP inventory holding period
FG inventory holding period
Debtors collection period
Less:
425000
25000
Year 1
Year 2
75
36
54
72
72
36
48
90
Creditors payment period
Operating cycle duration
60
177
Q3
Raw material reqd
Average inventory of RM
14,040,000
1,170,000
WIP inventory
Material
Direct labour
Overheads
Average WIP inventory
585,000
260,000
487,500
1,332,500
FG inventory
Debtors
Cash
CA required
2,665,000
5,200,000
60,000
10,427,500
Creditors
Wages outstanding
OH outstanding
GST outstanding
CL estimated
1,170,000
195,000
975,000
585,000
2,925,000
NWC required
7,502,500
48
198
0
