How much working capital will be required for the manufacturing of the following products.
(i) Bread
(ii) Furniture on orders (iii) Automobiles (iv) Sugar
(i) Bread It will require less working capital, as it is sold for cash and there is no need to maintain inventory.
(ii) Furniture on orders No inventory has to be maintained, andjjlso.advance is sometimes taken, thus requiring less working capital. (in) Automobiles Huge working capital is required, as the production cycle is long and huge inventory has to be maintained.
(iv) Sugar Due to long operating cycle and seasonal nature of the product, huge stock is maintained. Thus, it requires large working capital.