The following information has been submitted by a trading concern:
Required: Determine working capital amount.
Ans: Rs. 12,000
Following informations are provided:
| Inventory conversion period | 40 days |
| Receivable conversion period | 30 days |
| Payable deferred period | 15 days |
| Annual sales (360 days) | Rs. 72,000 |
| Variable cost per unit | Rs. 20 |
Required:
Ans: (a) 55 days (b) Rs. 11,000
Following information are provided:
| Sales per day | 5,000 units |
| Selling price per unit | Rs. 10 |
| Inventory conversion period | 20 days |
| Receivable conversion period | 30 days |
| Payable deferred period | 10 days |
Required:
Ans: (a) 40 days (b) Rs. 5,555.56
Biratnagar biscuit factory has inventory turnover of 2.4 times, a receivable collection period of 76 days and a payable deferred period of 60 days. Assume 360 days a year.
Ans: (a) 166 days (b) Rs. 11,40,000
The information regarding working capital are as under:
| Inventory conversion period | 40 days |
| Receivable conversion period | 20 days |
| Payable deferred period | 10 days |
| Days in a year | 360 days |
| Annual credit sale | 72,00,000 |
| Manufacturing cost per day | 12,000 |
Required:
Ans: (a) 50 days (b) Rs. 6,00,000
The following information are provided pertaining to working capital:
| Inventory conversion period | 30 days |
| Receivable conversion period | 18 days |
| Payable deferred period | 12 days |
| Annual credit sale | Rs. 18,00,000 |
| Days in year | 360 days |
Required:
Ans: (a) 36 days (b) Rs. 90,000 (c) 1,80,000
A company produces 1,000 units a day and incurs a cost of Rs. 72 per unit for material, labour and other expenses. The different conversion cycles of the working capital are as under:
| Inventory conversion period | 18 days |
| Receivable conversion period | 36 days |
| Payable deferred period | 12 days |
Required:
Ans: (a) 42 days (b) Rs. 36,00,000 (selling price per unit Rs. 100) (c) 30,24,000
The information pertaining to working capital are as under:
| Annual credit sales | Rs. 25,20,000 |
| Cost of sales | 70% |
| Average inventory | Rs. 70,000 |
| Average receivable | Rs. 91,000 |
| Account payable | Rs. 39,200 |
| Days in a year | 360 days |
Required:
Ans: (a) 14.29 ~ 14 days (b) 13 days (c) 8 days
The operating and closing value are as under:
| Opening | Closing | |
| Inventory | Rs. 80,000 | Rs. 1,20,000 |
| Debtors | Rs. 40,000 | Rs. 64,000 |
Additional Information:
Required:
Ans: (a) 30 days (b) 9.36 days
The information regarding the working capital are as under:
| Inventory conversion period | 15 days |
| Payable deferred period | 5 days |
| Receivable conversion period | 20 days |
| Sales per day | 3,000 units |
| Selling price per unit | Rs. 50 |
Required:
Ans: (a) 30 days (b) 45,00,000
The information are provided of Anil Company:
| Sales per day | 5,000 units |
| Sales price per day | Rs. 10 |
| Receivable conversion period | 20 days |
| Payable deferred period | 10 days |
Required:
Ans: (a) 40 days (b) 20,00,000
You are given the following information;
Sales for the year just ended were Rs. 60,000 and cost of goods sold was 60% of sales.
| Item | Beginning (Rs.) | Ending (Rs.) |
| Inventory | 5,000 | 7,000 |
| Account receivable | 1,600 | 2,400 |
| Account payable | 2,700 | 4,800 |
Required: Operating and cash cycles
Ans: 48 days; 10.5 days
A company annual sales of Rs. 8,00,000 with an inventory turnover ratio of 6 times. It has receivable collection period of 24 days and payable deferral period of 18 days. Assume 360 days in year.
Required:
Ans: 60 days; 66 days
Read the following information.
| Inventory turnover ratio | 10 times |
| Receivable turnover ratio | 10 times |
| Payable deferral period | 22 days |
| Days in a year | 360 days |
Required:
Ans: (a) 72 days (b) 80,000
C. Company has an inventory conversion period of 50 days, receivable conversion period of 25 days and payable deferral period is 15 days.
Required:
Ans: 75 days; 60 days
