Page 141 - Corporate Finance PDF Final new link

BRILLIANT’S Working Capital Management 141

7. Average amount of cash required to make 7. ES>dm§g no_|Q> Ho$ {cE Amdí`H$ H¡$e H$m EdaoO
advance payments, if any. A_mCÝQ> `{X H$moB© hmo VmoŸ&
8. The average credit period expected to be 8. gßcm`g© Ûmam {X`m OmZo dmcm EdaoO H«o${S>Q>
allowed by suppliers. nr[a`S>Ÿ&

9. Time-lag in the payment of wages and 9. _OXyar Ed§ AÝ` ì``m| Ho$ ^wJVmZ H$m {dc§{~V
other expenses. g_`Ÿ&

The proforma suggested for estimation of d{Hª$J H¡${nQ>c H$s Amdí`H$Vm H$m AZw_mZ cJmZo
working capital requirements are given as Ho$ {cE àñVm{dV àmo\$m°_m© {ZåZ{c{IV h¡:
follows:

1. For a Trading Concern:
STATEMENT OF WORKING CAPITAL REQUIREMENTS

Particulars Amount Amount
(`) (`)
Current Assets : NPP
(i) Cash .................
(ii) Debtors or Receivables (For.....month's sales) .................
(iii) Stocks (For.......month's sales) .................
(iv) Advance payments, if any .................
(v) Others ................. –––––
Less : Current Liabilities :
(i) Creditors (For....month's purchase) .................
(ii) Lag in payment of expenses
(Outstanding expenses, if any) .................
Working Capital (C.A.– C.L.) ––––––– –––––
.................
–––––––
Add : Provision/Margin for Contingencies .................
Net Working Capital Required –––––––

2. For a Manufacturing Concern

STATEMENT OF WORKING CAPITAL REQUIREMENTS
Particulars Amount Amount
(`) (`)
Current Assets :
(i) Stock of Raw Material .................
(For....month's consumption)