Following information is provided by the Lake Ltd. for the year ending 31 March 2023 : Raw material storage period 60 days WIP conversion period 22 days Finished goods storage period 29 days Debt collection period 40 day
CS Executive · Financial and Strategic Management · PYQS · December 2023
Following information is provided by the Lake Ltd. for the year ending 31 March 2023 : Raw material storage period 60 days WIP conversion period 22 days Finished goods storage period 29 days Debt collection period 40 days Creditor's payment period 60 days Annual operating cost including depreciation of ₹2,00,000 was ₹20,00,000. [1 Year = 360 days] You are required to calculate working capital on cash cost basis, assuming no cost classification is available.
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Financial Management
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