Please Correct Solution with Explanation Do not Give solution in image format Asap Zebra Enterprises is in the business of manufacturing iron buckets. The firm is headquatered in Gurgaonand supplies materials across India. The selling price of each bucket is Rs 130. The cost per bucket is 110.5(which includes Raw material = Rs 52, Direct labor = Rs19.5, Overheads = Rs39). Average raw material instock for 30 days, average materials in process is 15days, finished goods lie in the stock for 30 days beforebeing sold. Credit allowed by suppliers of raw materials is 30 days and the credit allowed to debtors is 60days. Time lag in the payment of wages is 10 days and for overheads is 30 days. 25% of the sales are oncash basis. Cash balance is expected to be Rs1,20,000. Estimate the Working Capital required for a level ofactivity of 70000 units of output annually. Assume production is carried out evenly during the year andthere are 360 days in the year.

Total working capital required = Raw materials + Work-in-progress + Finished goods + Credit allowed…

Answered: Zebra Enterprises is in the business of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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