Question -
Answer -
Requirements of working capital for the mentioned business will be:
(a) Bread Requirements of working capital will be less because it has quick cash turnover.
(b) Sugar;- working capital required for manufacturers will be more as ration of raw material cost to total cost is more.
(c) Coolers:- working capital required for manufacturers of cooler will be more because it is a seasonal product.
(d) Furniture:- Requirements of working capital for a manufacturer of furniture manufactured against specific order is less as it doesn’t requires large stock.
(e) Motor car;- Requirements of working capital for a manufacturer of locomotives will be more because gestation period is more.