- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
HOW IS WORKING CAPITAL CALCULATION DONE KINDLY ASSIST ON THIS, AS IT SAYS 10 % OF SALES . WHERE AS THE SALES HAVE BEEN INFLATED , BUT IN THE ANS IT SHOW SOME DIFFERENT FIGURE
Please do not type in capital letters.
At time zero, the working capital is 130.88, which is 10% of the first years sales.
At time 1 they need the working capital to be 10% of the second years sales of 2817.26. So they need 281.73.
However they already have 130.88, so the extra cash needed is the difference of 281.73 – 130.88 = 150.85At the time 2 they need it to be 10% of the third years sales, so they need a total of 790.79.
They already have 281.73, and so the extra cash needed is 790.79 – 281.73 = 509.06And so on 🙂
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘DARN CO . DEC 2013’ is closed to new replies.