Guest

1. Chandru Limited 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 Total - 95 days Using the following data, calculate the current working capital cycle for XYZ Ltd., and briefly comment on it. Credit sales - 5000 Total cost of sales - 4000 Cost of production - 3000 Purchases - 3500 Total raw material consumed - 600 Average raw material stock - 800 Average work in progress - 85 Average finished goods stock - 180 Average creditors - 700 Average debtors - 350


    1.    Chandru Limited 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


    Total                                                    - 95 days


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


Credit sales                                            - 5000


Total cost of sales                                 - 4000


Cost of production                               - 3000


Purchases                                              - 3500


Total raw material consumed - 600


Average raw material stock                 - 800


Average work in progress                    - 85


Average finished goods stock  - 180


Average creditors                                  - 700


Average debtors                                    - 350

Grade:

1 Answers

SAGAR SINGH - IIT DELHI
878 Points
13 years ago

Dear student,

Please specify the thing you want us to calculate in this broad data...

Please feel free to ask your queries here. We are all IITians and here to help you in your IIT JEE preparation.

All the best.

Win exciting gifts by answering the questions on Discussion Forum. So help discuss any query on askiitians forum and become an Elite Expert League askiitian.

Now you score 5+15 POINTS by uploading your Pic and Downloading the Askiitians Toolbar  respectively : Click here to download the toolbar..

 

Askiitians Expert

Sagar Singh

B.Tech, IIT Delhi

Think You Can Provide A Better Answer ?

ASK QUESTION

Get your questions answered by the expert for free