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    • Question

      A seasonal manufacturing unit submits a monthly cash

      budget showing peak cash deficits of ₹18 crore in August, ₹22 crore in September and ₹15 crore in October. The promoter confirms availability of ₹4 crore from own sources to support operations. Based strictly on the cash budget method, what should be the maximum permissible working capital limit?
      A ₹18 crore Correct Answer Incorrect Answer
      B ₹19 crore Correct Answer Incorrect Answer
      C ₹20 crore Correct Answer Incorrect Answer
      D ₹22 crore Correct Answer Incorrect Answer
      E ₹26 crore Correct Answer Incorrect Answer

      Solution

      Peak deficit = 22. Promoter margin = 4. Bank finance = 22 – 4 = ₹18 crore.

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