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Part C

Compulsory question, the question carries 20 marks

11. From the following information estimate Working Capital Requirements :
Estimated output: 72000 units

Estimated cost of selling price:
Material-50%, Labour-25%, Overhead-15%, profit 10%
Time lag:
Raw materials in store for 2 months
Materials will be in process for I month
Finished goods remain in store for 1.5 months
Credit to customers- 2 months
Credit by suppliers-2 months
Cash in hand-Rs. 10,000

Advances Paid - २8.25.000
Delay in payment of wages-5000

You can assume 15 °0 provision for contingency.
(20 marks)