Business, 08.02.2021 23:20, michellestepp2001
In the following scenarios, 1) calculate the required working capital finance, 2) When the capital will be ready to be used for further material and labour costs?
Scenario 1
o Material purchased each day for £1,000 paid for in cash.
o Production takes a day. Labour cost £600, other variable costs £400 all paid immediately.
o Products sold at the end of Day 1 for £2,500.
o New production cycle starts at the start of day 2
Scenario 2
o Material purchased each day 1 for £1,000 paid for in cash.
o Production takes a day. Labour cost £600, other variable costs £400 all paid immediately.
o Products sold at the end of each day for £2,500 with payment required in 60 days.
o New production cycle starts at the start of day 2
Answers: 3
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In the following scenarios, 1) calculate the required working capital finance, 2) When the capital w...
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