A businessman who wants to start a manufacturing concern, approaches you to suggest him whether the following manufacturing concern would require large or small working capital:
(a) Bread
(b) Coolers
(c) Sugar
(d) Motor car
(e) Furniture manufactured against specific orders
(f) Locomotives

Explanation

(a) Bread. Requirement of working capital will be less because it has quick cash turn over.
(b) Coolers. Requirement of working capital is more because it is a seasonal product.
(c) Sugar. Working capital required will be more because operating cycle is long.
(d) Motor car. Working capital required will be more because of long operating cycle.
(e) Furniture. Requirement of working capital will be less because no inventory has to be maintained.
(f) Locomotives. Requirements of working capital will be less because of small operating cycle.