Suppose a company has a sale of Rs. 200,000 for the year. The cost structure...
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Accounting
Suppose a company has a sale of Rs. 200,000 for the year. The cost structure is given as follows: Raw materials is 60% of sales, labour is 15% of sales, overheads is 10% of sales. The profit is 15% sales and total cost is 85% sales. What is the amount of current assets for the year if the holding periods are as follows: Raw material 15 days, work in progress 7 days, finished goods 15 days and debtors 30 days. Assume 365 days in a year.
Group of answer choices
Rs.35679
Rs.25789
Rs.41907
Rs.31137
Rs.40000
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