ABC Ltd. has invoiced Rs.
100,000 to the customer PQR Ltd in
advance for 10 months in Apr 19 of which
services worth Rs. 20,000 have been
delivered. Another invoice for services
worth Rs. 30,000 delivered to XYZ Itd. is
missed for invoicing.
On the supplier side, KYD Ltd has raised
a service order of Rs. 70,000 worth to
ABC Ltd of which an invoice amounting to
Rs. 30,000 has been received in advance.
How much would be the net margin
impact (assuming 50% of revenue is cost
of sales) and net working capital for the
month of Apr19 (assuming cash is not
collected or paid for any of the invoice).