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144 Corporate Finance BRILLIANT’S

(iv) Payment in advance: / ES>dm§g ‘| ^wJVmZ
Sundry expenses (Paid quarterly in advance) 8,000
{d{dY 춶 (ES>dm§g ‘| Ì¡‘m{gH$ ^wJVmZ)
Undrawn profits on the average throughout the year
nyao df© ‘| Am¡gVZ ‘wZm’$m H$‘m¶m 11,000
Set-up your calculations for the average amount of working capital required.
Amdí`H$ d{Hª$J H¡${nQ>b H$s Am¡gV am{e Ho$ {bE AmnH$s JUZm H$s{OE&
Solution:

Statement to determine Net Working Capital for X & Y Co.
Particulars Amount (`)

(A) Current Assets:
(i) Stock of finished product 5,000
(ii) Stock of stores, material, etc. 8,000
Credit Sales 3,12,000 6
(iii)Debtors: Inland Sales 6 weeks = =  36,000
Debtors turnover 52

78,000 1.5
Export sales 1.5 weeks = 2,250
52
8,000  1
(iv) Advance payment of sundry expenses = 2,000
4
Total Investment in Current Assets 53,250
(B) Current Liabilities:

 2,60,000 1.5 
(i) Wages =   7,500
 52 

 48,000 1.5 
(ii) Stock, materials, etc. =   6,000
 12 

 10,000 6 
(iii) Rent, Royalties, etc. =   5,000
 12 
 62,400 0.5 
(iv) Clerical Staff =   2,600
 12 

 4,800 0.5 
(v) Manager =   200
 12 