calculate prime cost from the following Stock of raw material on 1st January, 2020 Rs 40,000 Stock of raw materials on 31st march, 2020 Rs 60,000 Purchase of raw materials during the period Rs 1,50,000 Paid for direct labour Rs 30,000 Direct expenses Rs 4000 carriage inwards Rs 1000 carriage outwards Rs 2000.

Operating Capacity in hours per year = 2,000 hours Hourly rate for crane with operator = $203.00 Downtime = 10.0% Operating Expense = 53.0% Calculate each with the provided numbers above: Gross Potential Income Effective Gross Income Net Operating Income.

Question 1: Estimation of WC The management of ABC Company Limited has called for a statement showing the WC needed to finance a level of activity of 3,00,000 units of output per year. The cost statement of the company's product, for the above-mentioned activity level, is given below: Cost per unit TK 20 Direct material Direct labor Overhead Total cost Target profit Target selling price 5 TK 15 40 10 TK 50 1. Past records show that raw materials are held in stock, on an average, for two (2) months; 2. Work in process (WIP) will approximate to 15 days production; 3. Finished goods remain in warehouse on average for 1 month; 4. Suppliers for materials extend one month's credit; 5. Two months credit is normally allowed to customers (assume all sales are on credit) 6. A minimum cash balance of TK 5,00,000 is expected to be maintained; 7. The production pattern is assumed to be even during the year. Prepare a Statement of Working Capital Requirements

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