SOLUTION: Triveni: Enterprises plans to sell 30,000 units next year. The expected cost of goods sold is as follows: Per unit(`) Raw materials 200 Manufacturing expenses 60 Including selli

Question 1183201: Triveni: Enterprises plans to sell 30,000 units next year. The expected cost of
goods sold is as follows:
Per unit(`) Raw materials 200
Manufacturing expenses 60 Including selling and distribution expenses 40 Selling price 400
The duration of various stages of the operating cycle is expected to be as follows:
2
6787
Raw materials stage WIP stage
Finished goods stage Debtors stage
2 months 1month 1⁄2 month 1 month
Assuming the monthly sales level to be 2,500 units
1. Calculatetheinvestmentinvariouscurrentassets
2. Estimatetheworkingcapitalrequirementifthedesiredcashbalanceis
5% of the working capital requirements.
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
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