Prepare working capital forecasting statement of company

Reference no: EM13181826

A company is currently operating at 80% of its capacity producing 48,000 units per year at the following Cost Price structure:

	Rs. per unit
Materials	5.00
Labour	3.00
Overheads (including depreciation of Rs. 500 per week)	2.00
Selling Price	12.00

Other information:

80% of sales are made on credit and 40% of purchases are made in cash.
Materials are kept in store for 6 weeks, the processing time is 8 weeks and the finished goods are stored in godown for 90 days.
Debtors are allowed a credit period of 10 weeks and a credit period of 45 days is received from the creditors.
Lag in payment of wages and overheads are 3 weeks and 15 days, respectively.

Prepare the Working Capital forecasting statement of the company.

Reference no: EM13181826

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