4 Sagar Ltd. desires to purchase a business and has consulted you and one point on which you are to advise them is the average amount of working capital which will be required in the first year's working. You have given the following estimates and instructed to add 10% to your computed figure to allow for contingencies. Figures for the year (Rs.) (i) Amount blocked up for stocks: Stocks of finished product 3,000 Stocks of stores, materials etc. 5,000 (ii) Average credit given: Inland sales -4 weeks credit 26,000 Export sales - 11/2 week credit 65,000 (iii) Lag in payment of wages and other outputs: Wages - 121 weeks 2,40,000 36,000 8,000 60,000 4,000 36,000 Stocks of materials etc. 121 months Rent, Royalties, etc. -4 months Clerical staff - 121 months Manager - 1/2 month Miscellaneous expenses - 121 month 6,000 (iv) Payment in advance: Sundry expenses (Paid quarterly in advance) 9,000 (v) Undrawn profit on the average throughout the year State your calculation for the average amount of working capital required