Question: From the given, find out the operating cycle in number of days and value, investment per cycle from our side, net current assets, net current liabilities and eligible bank finance at a current ratio of 2:1. (Rupees in lakhs)
A) Raw materials – imported: Annual consumption 1800 - holding 45 days.
B) Raw materials – indigenous: Annual consumption 2400 - holding 20 days.
C) Packing materials: Annual consumption 420 - holding 30 days.
D) Consumable stores and spares: Annual consumption 360 - holding 60 days
E) Work-in-progress: Annual cost of production 6300 - holding 21 days
F) Finished goods: Annual cost of goods sold 7200 - holding 15 days
G) Inland short-term receivables: Gross sales 12720 - outstanding 2 months
H) Other current assets - 10% of net current assets.
The other current liabilities: 10% of net current liabilities.