Calculate working capital requirement with a provision for contingencies @ 10% of net working capital.

Answer 1(b) Calculation of Working Capital Requirement In the absence of information on Components of Raw Material Consumption, Work-in Progress, Finished Goods etc. the working capital has been estimated on the basis of information compiled in Balance Sheet. Statement showing Estimates of the Working Capital Amount (in ₹) CURRENT ASSETS Inventory 12,00,000 Debtors 10,00,000 Cash 3,00,000 A Total Current Assets 25,00,000 CURRENT LIABILITIES Short Term Debts 10,00,000 B Total Current Liabilities 10,00,000 C Working Capital (A-B) 15,00,000 Add: 10% for Contingencies 1,50,000 D Estimated Working Capital Requirement 16,50,000