You are a financial expert and your company startys a busineess of manufaturing baby toys. Suggest the working capital requirement and phases of operating cycle.

Explanation

It is a manfacturing company thus, the requirement of working capital is large as these companies require to maintain stock of raw materials, semi-finished and finished goods.
Phases of operating cycle of a manufacturing company are :
(i) purchase of raw material.
(ii) payment of labour, power, fuel and other expenses.
(iii) converting raw material into finsihed goods.
(iv) sale of finished goods.