Problem: 3: Determine the working capital from the following data given below Production is estimated to be 31,200 units. Assume I month= 4 weeks leurs 52 wees. 1. Cost of the production per units: Materials $45 x 31200, 140 4000 Labor $20 62400 Overheads $37.5 = \\70 00 2. Raw Materials are expected to be remain in the stores for an average one month. 3. Finished goods are likely to be remain in the warehouse for an average one months. 4. Each unit of production should be take average half of the month. 5. Customers are allowed two months credit...no percentage 6. Credit allowed to suppliers of materials is one month. 7. Lag in payment to wages is half month. 8. Leg in payment of overheads is one month. 9. Cash available $ 60,000. 10. 50 % of the production is sold against cash and 20% Raw material purchase against cash. Add 25% for contingencies. Problem: 3: Determine the working capital from the following data given below Production is estimated to be 31,200 units. Assume I month= 4 weeks leurs 52 wees. 1. Cost of the production per units: Materials $45 x 31200, 140 4000 Labor $20 62400 Overheads $37.5 = \\70 00 2. Raw Materials are expected to be remain in the stores for an average one month. 3. Finished goods are likely to be remain in the warehouse for an average one months. 4. Each unit of production should be take average half of the month. 5. Customers are allowed two months credit...no percentage 6. Credit allowed to suppliers of materials is one month. 7. Lag in payment to wages is half month. 8. Leg in payment of overheads is one month. 9. Cash available $ 60,000. 10. 50 % of the production is sold against cash and 20% Raw material purchase against cash. Add 25% for contingencies