Prepare an estimate of working capital requirements.

(i) Projected annual sales80,000 units.

(ii) Selling price Rs. 8 per unit.

(iii) Percentage of profit 20%.

(iv) Credit allowed to debtors10 weeks.

(v) Credit allowed to suppliers8 weeks.

(vi) Average stock holding (in terms of sales)10 weeks.

(vii) Allow 20% for contingencies.

Do not copy from Chegg and give complete answer with explanation