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  • Working Capital Cycle For Lc-Model

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    IEEM (BD) LTD requires $180,000 in working capital to produce and ship orders of resin product over 57 days. The cycle includes 2 days to reopen an L/C for $60,000 orders, 7 days for goods in transit, 20 days of stock at the warehouse, and 30 days of stock in the work in process stage before shipment. The credit facilities are then refunded from sale proceeds over another 30 days.

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    Working Capital Cycle for Lc-Model

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    IEEM (BD) LTD requires $180,000 in working capital to produce and ship orders of resin product over 57 days. The cycle includes 2 days to reopen an L/C for $60,000 orders, 7 days for goods in transit, 20 days of stock at the warehouse, and 30 days of stock in the work in process stage before shipment. The credit facilities are then refunded from sale proceeds over another 30 days.

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    3 views1 page

    Working Capital Cycle For Lc-Model

    Uploaded by

    ion yeasin
    IEEM (BD) LTD requires $180,000 in working capital to produce and ship orders of resin product over 57 days. The cycle includes 2 days to reopen an L/C for $60,000 orders, 7 days for goods in transit, 20 days of stock at the warehouse, and 30 days of stock in the work in process stage before shipment. The credit facilities are then refunded from sale proceeds over another 30 days.

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    © All Rights Reserved
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    of 1

    IEEM (BD) LTD.

    WORKING CAPITAL CYCLE


    PRODUCT: RESIN

    L/C OPENING
    $60000

    Sale, collection 2Days for Re-

    and credit opening the L/C.

    facilities Refund. 7Days

    $60000
    Order size/Per Order USD 60,000.00 USD USD

    Available stock in warehouse 60,000.00

    Stock in transit 60,000.00

    GOODS IN TRANSIT
    Stock at work in process for shipment 60,000.00

    $60000
    Working Capital require for RESIN 180,000.00
    Product

    30Days
    As per this working capital cycle, usd 180,000 is required for 57 days
    and since then the credit facilities shall be refunded from the sale
    proceeds.
    20Days

    WAREHOUSE
    $60000

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