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Estimate the net working capital for the firm from the given figures. Add 1 0 / % to yourcomputed figure to allow for contingencies.Estimated cost

Estimate the net working capital for the firm from the given figures. Add 10/% to yourcomputed figure to allow for contingencies.Estimated cost per unit of productionRaw Material Rs.80Direct Labor 30Overheads (including depreciation of Rs.5)65Total 175Additional Information Selling Price Rs.200 per unit; Level of activity 1,04,000 units per annum RM in stock average 4 weeks WIP (assume full unit of raw material required in the beginning of manufacturing; otherconversion costs are 50%) average 2 weeks Finished goods in stock average 4 weeks; Credit allowed by suppliers average 4 weeks Credit allowed to debtors average 8 weeks; Time lag in payment of wages 1.5 weeks Cash in bank (desired to be maintained) Rs.25,000/- All sales on credit basis; No of weeks in an year are 52.

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