XYZ has provided the following information. Estimate the net working capital required for that project. Add 10% to your computed figure to allow for contingencies

1.Calculate the working capital requirement - provide 10% for contingencies

2.What are the values of current assets and current liabilities? Pls compute current ratio. Analyze and comment when the industry average is 2?

3.As consultants what are the positive benefits of implementing IT systems on working capital management?

Raw material (in stock for 4 weeks) Annual consumption Rs ?3,20,000 (Lag in payment is 2 weeks) Procurement of standard parts from Annual procurement is Rs 10,00,000 strategic vendor (Lag in payment is 4 weeks) Average nished good in stock valued at cost {4 Annual cost of finished goods sold Rs 1,59, 12,000 weeks of holdings} Average debtor holding 8 weeks of sale value Annual sales 136,550,000 Lag of payment wages [4 Weeks} Annual wage bill Rs 20,00,000 Cash and cash equivalents Rs 5,00,000