Friday, February 27, 2009

Working capital cycle

In manufacturing organisation , working capital cycle starts from purchasing of raw material and its end is on cash received from customer by selling finished product to customer . In this cycle , we can include the activities of purchasing raw material , work in progress , making of finished goods and contain in stock , sale the goods on credit and show the account of debtors and in last we also include cash or bank account , if we receive our sale value from debtors . This is called working capital cycle .

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