The current assets of a firm include Inventory of ₹124 Lakh, Receivables (including bills with bankers) of ₹80 Lakhs and Cash and Bank Balance of ₹4 Lakhs. Its total current liabilities are ₹140 Lakhs including bank borr
CS Executive · Financial and Strategic Management · PYQS · December 2022
The current assets of a firm include Inventory of ₹124 Lakh, Receivables (including bills with bankers) of ₹80 Lakhs and Cash and Bank Balance of ₹4 Lakhs. Its total current liabilities are ₹140 Lakhs including bank borrowings of ₹60 Lakhs. What is the additional amount that the firm can borrow from bank for working capital in the light of method II of Tandon Committee ? (A) ₹21.60 Lakh (B) ₹32 Lakh (C) ₹38.40 Lakh (D) None of the above
Answer & Explanation:
Correct Answer: Option (D)
Official answer key: (D).
Topics: Financial Management
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