11. For a new business Mr. Bose supplied the following information:

(i) The projected annual sales- `1,20,00,000

(ii) He has estimated fixed expenses `20,000 per month and variable expenses equal to 2 per cent of turnover.

(iii) Percentage of gross profit on cost of purchase will be 25%.

(iv) Average expected credit period allowed to debtors-1 month.

(v) Average expected credit period from suppliers-15 days.

(vi) He expects to turnover his stock 5 times in a year.
(vii) Average cash holding – 1 month’s expenses.
You are required to forecast his working capital requirement.