poney 3. From the projections of PQR Ltd. for the next year, estimate the working capital required by the company, Amount in R Particulars Annunl Sales Labour Cost Raw material purchases Fixed monthly administrative overheads Opening stock of raw materials Closing stock of raw materials Selling and distribution expenses Total cost of production (including depreciation of Rs. 1.20,000) 16,40,000 4,80,000 7,05,000 30.000 1.40.000 1.25.000 50,000 14 00,000 2 Page The following information is also available: (i) Raw material is expected to remain in stores for an average period of one month (ii) Work is in process on an average for half a month. (iii) Finished goods are required to be in stock on an average period of two months. (iv) 80% sales are credit sales. (v) Credit allowed to debtors is three month. (vi) Credit allowed by suppliers is two months. (vii) Lag in payment of wages is 1 month (vii) Lag in payment administrative overhead is half a month. (ix) The company wishes to have a desired cash balance of Rs. 50,000. (x) Make a provision for contingencies @ 10% of working capital required. (15) poney 3. From the projections of PQR Ltd. for the next year, estimate the working capital required by the company, Amount in R Particulars Annunl Sales Labour Cost Raw material purchases Fixed monthly administrative overheads Opening stock of raw materials Closing stock of raw materials Selling and distribution expenses Total cost of production (including depreciation of Rs. 1.20,000) 16,40,000 4,80,000 7,05,000 30.000 1.40.000 1.25.000 50,000 14 00,000 2 Page The following information is also available: (i) Raw material is expected to remain in stores for an average period of one month (ii) Work is in process on an average for half a month. (iii) Finished goods are required to be in stock on an average period of two months. (iv) 80% sales are credit sales. (v) Credit allowed to debtors is three month. (vi) Credit allowed by suppliers is two months. (vii) Lag in payment of wages is 1 month (vii) Lag in payment administrative overhead is half a month. (ix) The company wishes to have a desired cash balance of Rs. 50,000. (x) Make a provision for contingencies @ 10% of working capital required. (15)