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XYZ Ltd. has obtained the following data concerning the average working capital cycle for other companies in the same industry : Raw material stock turnover 20 Days Credit received 40 Days Work-in-Progress Turnover 15 Days Finished goods stock turnover 40 Days Debtors' collection period 60 Days 95 Days Using the following data, calculate the current working capital cycle for XYZ Ltd. And briefly comment on it. (Rs. in '000) Sales 3,000 Cost of Production 2,100 Purchase 600 Average raw material stock 80 Average work-in-progress 85 Average finished goods stock 180 Average creditors 90 Average debtors 350

XYZ Ltd. has obtained the following data concerning the average working capital cycle for other companies in the same industry :

            Raw material stock turnover                                       20 Days

            Credit received                                                           40 Days

            Work-in-Progress Turnover                                         15 Days

            Finished goods stock turnover                                    40 Days

            Debtors' collection period                                           60 Days

                                                                                                95 Days

Using the following data, calculate the current working capital cycle for XYZ Ltd. And briefly comment on it.

 

 

(Rs. in '000)

Sales

3,000

Cost of Production

2,100

Purchase

600

Average raw material stock

80

Average work-in-progress

85

Average finished goods stock

180

Average creditors

90

Average debtors

350

 

Grade:12th pass

1 Answers

Saurabh Koranglekar
askIITians Faculty 10335 Points
3 years ago
Dear student

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