Cost sheet, Financial Management

Assignment Help:

A proforma cost sheet of a company provides the following data:

 

RO

Cost (per unit)

 

   Raw materials

52.0

   Direct Labour

19.5

   Overheads

39.0

Total Cost (per unit)

110.5

Profit

19.5

Selling Price

130.0

The following is the additional information available:

Average raw material in stock              :           One Month

Average materials in process               :           Half Month

Credit allowed by suppliers                  :           One Month

Credit allowed to debtors                    :           Two Month

Time lag in payment of wages             :           10 Days

Overhead                                         :           One Month

One fourth of sales are cash basis.

Cash balance in expected to be RO 120,000/-.

(Month = 30 Days)

You are requested to prepare a statement showing the working capital needed to finance a level of activity of 70,000 units of output. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly.

 


Related Discussions:- Cost sheet

Calculate the stock price of the company, As the CEO of PG Industries, you ...

As the CEO of PG Industries, you are hired at the pleasure of the Board of Directors, who in turn are elected by the shareholders. You are considering Project A which you are convi

Passive management, In the efficient markets, whether it is sec...

In the efficient markets, whether it is security, equity or fixed-income markets it is believed that the investors use some type of passive strategy in

Estimate the cost of equity capital, You are required to choose a company f...

You are required to choose a company for analysis.  This company should be quoted on one of the principal international exchanges.  It may be your own company.  You should then do

Show the present value of a single flow, Q. Show the Present Value of a Sin...

Q. Show the Present Value of a Single Flow ? Discounting or else Present Value of a Single Flow (Lump Sum):- We are able to determine the PV of a future cash flow using the for

Show external business risk, Q. Show External business risk? External r...

Q. Show External business risk? External risk is the result of operating conditions imposed on the firm by circumstances beyond its control. The external environments in which

What is sinking fund, What is Sinking Fund A provision which requires t...

What is Sinking Fund A provision which requires the corporation to set aside a fixed amount every year to help provide for orderly repayment of the debt issue.

What is capital budgeting, What is Capital Budgeting Capital Budgeting...

What is Capital Budgeting Capital Budgeting is probably the most financial decision for a firm. It relates to selection of an asset or investment proposal or course of action

Role of primary dealers, Role of Primary Dealers To promote the investm...

Role of Primary Dealers To promote the investment activity in the Government Securities market, several countries have adopted licensed Primary Dealers (PDs) as important inter

What do you mean by hedge fund, Q. What do you mean by Hedge Fund? In t...

Q. What do you mean by Hedge Fund? In the easiest strategy a hedge fund borrows Hong Kong dollars (HKD) and then sells them in the market against USD that is they short the HKD

Define which proposed capital budgeting projects to accept, For a specified...

For a specified IOS and MCC, how do financial managers decide that which proposed capital budgeting projects to accept, and which to reject? For a specified IOS and MCC, all inde

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd