SE Coaching, Dhaka

From the following information of Salman Ltd. prepare a statement of working capital requirement for the company for 2022: Expected monthly sales of 32,000 units @ Tk. 10 p.u.
Cost on selling price:
Raw material 40%
Labor 30%
Budgeted factory overhead Tk. 16,000 per week including depreciation Tk. 4000.
Other Information’s:
(i) Planned stock—Raw materials for Tk. 96,000. Finished stock 16,000 units.
(ii) Materials will stay in process for 2 weeks.
(iii) Credit allowed to debtors is 5 weeks.
(iv) Credit allowed by creditors is 1 month.
(v) Lag in payment of wages and overhead is 2 weeks.
(vi) Expected cash balance Tk. 30,000.
(vii) A time period of 4 weeks is equivalent to a month.

#বিবিএ #ফাইন্যান্স #জাতীয়বিশ্ববিদ্যালয়

#জাতীয়বিশ্ববিদ্যালয় #বিবিএ #ফাইন্যান্স
Noyon Limited is presently operating 60 per cent level producing 36,000 packets of biscuits and proposes to increase its capacity utilization in the coming year by 33.33 percent (%) over the existing level of production. The following data has been s supplied
Raw Material
Tk. 4
Wages (Variable)
2
Overhead
2
Fixed Overhead
1
Profit
3
Seling Price
12
Raw Material will remain in stores for 1 month before being issued for production. Material will remain in process for further 1 month Supplier grant 3 months credit to the company
(i) Finished goods remain in warehouse (go-down) for 1 month
(ii) Debtors are allowed credit for 2 months
(iii) Average time lag in wages and overhead payments is 1 month & these expenses accrue evenly throughout the production cycle
(iv) No increase either in cost of inputs or selling rice is envisaged (envisaged = planned)
Prepare a projected profitability statement and a showing working capital requirement at the new level assuming that a minimum cash balance of Tk. 19,500 has to be maintained