Following information is forecasted by the Puja Limited for the year ending 31st March, 2025: Balance as at 1st April, 20X6 (₹) Balance as at 31st…

Working Notes: 1. Raw Material Storage Period (R) = (Average Stock of Raw Material / Annual Consumption of Raw Material) × 365 Annual Consumption of Raw Material = Opening Stock + Purchases- Closing Stock = 45,000 +4,00,000 - 65,356 = 3,79,644 R = [(45,000 + 65,356)/2 / 3,79,644] × 365 = 53 days. 2. Work-in-Progress (WIP) Conversion Period (W) WIP Conversion Period = (Average Stock of WIP / Annual Cost of Production) × 365 = [ (35,000+51,300)/2 / 7,50,000 ] × 365 = 21 days 3. Finished Stock Storage Period (F) = (Average Stock of Finished Goods / Cost of Goods Sold) × 365 Average Stock = (60,181+70,175)/2 = 65,178. = (65,178 / 9,15,000) × 365 = 26 days. 4. Debtors Collection Period (D) = (Average Debtors / Annual Credit Sales) × 365 Average debtors = (1,12,123+1,35,000)/2 = 1,23,561.50 = (1,23,561.50 / 11,00,000) × 365 = 41 days 5. Creditors Payment Period (C) = (Average Creditors / Annual Net Credit Purchases) × 365 = [ (50,079+70,469)/2 / 4,00,000 ] × 365 = 55 days (i) Operating Cycle Period = R + W + F+ D - C = 53 + 21 +26 + 41 - 55 = 86 days