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    Question

    If a company’s working capital cycle is 60 days and

    average daily operating expenses are ₹50,000, what is the approximate working capital requirement?
    A ₹20 lakhs Correct Answer Incorrect Answer
    B ₹25 lakhs Correct Answer Incorrect Answer
    C ₹30 lakhs Correct Answer Incorrect Answer
    D ₹35 lakhs Correct Answer Incorrect Answer
    E ₹40 lakhs Correct Answer Incorrect Answer

    Solution

    Working capital requirement = Working capital cycle × Daily expenses = 60 × ₹50,000 = ₹30,00,000 or ₹30 lakhs

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