2. X&Co. is desirous to purchase a business and has consulted you, and the one point on which you are asked to advise them is the average amount of working capital which will be required in the first year's working. You are given the following estimates and are instructed to add 10 per cent to your computed figure to allow for contingencies: Figures for the Year () Average amount backed up for stocks: Stocks of finished product Stocks of stores, materials, etc. 5,000 8,000 Average credit given: Inland sales 6 weeks' credit 3,12,000 Export sales Lag in payment of wages and other outgoings: 1 weeks' credit 78,000 Wages 1 weeks 260,000 Stocks, materials, etc. 1 weeks 48,000 Rent, royalties, etc. 6 months 10,000 Clerical staff Manager month 62,000 month 4,800 Miscellaneous expenses 1 months 48,000 Payment in advance: Sundry expenses (paid quarterly in advance) Undrawn profits on the average throughout the year 8,000 11,000 Set up your calculations for the average amount of workingq capital required.