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    Question

    A manufacturing unit has Raw Material holding of 60

    days, WIP of 30 days, Finished Goods of 45 days and Receivables of 75 days. Payables period is 60 days. Annual cost of production is тВ╣360 crore. What is the Working Capital requirement based on Operating Cycle?
    A тВ╣120 crore Correct Answer Incorrect Answer
    B тВ╣135 crore Correct Answer Incorrect Answer
    C тВ╣150 crore Correct Answer Incorrect Answer
    D тВ╣165 crore Correct Answer Incorrect Answer
    E тВ╣180 crore Correct Answer Incorrect Answer

    Solution

    Operating Cycle = 60 + 30 + 45 + 75 тАУ 60 = 150 days Daily cost = 360 / 365 тЙИ 0.986 WC тЙИ 0.986 ├Ч 150 тЙИ тВ╣148тАУ150 crore

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