We are in the process of acquiring a business and want to calculate the working capital target. We do have the monthly P&L’s of the business which are maintained on a cash basis. The profits vary depending on the incoming cashflows. Some months there is negative cashflow and positive for others. Pay Cycle: About 20-30% of the payments are received right awayredacted% are receivedredactedmonths later. Here is the language from our LOI: The Purchase Price assumes the Business is purchased: (i) on a debt-free basis, (ii) with a sufficient amount of working capital of 2 months (based on historical levels and subject to determination during the Purchaser’s due diligence investigation) to continue normal operations. What formula/method would you use to calculate the target working capital based on the information above?