1. From the following data, compute the duration of the operating cycle for each of the two years and give reasons for the increase/decrease. Assume 360 days per year for computation purposes. 2. Pranshu Ltd. plans to sell 30,000 units next year. The expected per unit cost of goods is as follows: R The duration at various stages of operating cycle is expected to be as follows: Assuming monthly sales level of 2,500 units, estimate the gross working capital requirements if the desired cash balance is 5%
View complete question 1. From the following data, compute the duration of the operating cycle for each of the two years and give reasons for the increase/decrease. Assume 360 days per year for computation purposes. 2. Pranshu Ltd. plans to sell 30,000 units next year. The expected per unit cost of goods is as follows: R The duration at various stages of operating cycle is expected to be as follows: Assuming monthly sales level of 2,500 units, estimate the gross working capital requirements if the desired cash balance is 5% of the gross working capital requirements and work-in-progress is 25% complete with the respect to manufacturing expenses. 3. The relevant information of XYZ Ltd. for the year ended 2009 is given below: What is the length of net operating cycle? Assume 365 days in a year.
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