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Prepare an estimate of working capital requirements 1. Annual sales 100000 units 2. Selling price Rs 8 per unit 3. Percentage of net profit on

Prepare an estimate of working capital requirements

1. Annual sales 100000 units

2. Selling price Rs 8 per unit

3. Percentage of net profit on sales 25

4. Average credit period 8 weeks

5. Average credit period allowed to suppliers 4 weeks

6. Average stock holding in terms of sales 12 weeks

7. Allow 10 percent for contingencies

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