18. From the following data provided by M Ltd., compute the Working Capital requirement:

Activity level: 1,56,000 units of output p.a.

Selling price per unit: `265 Per unit raw material cost: `90 Per unit labour cost: `40 Per unit overhead cost: `75 Raw materials in store: 1 month Processing period: 2 weeks Finished goods in store: 1 month Credit allowed to debtors: 2 months Credit allowed by creditors: 1 month Lag in payment of wages: 1½ weeks Lag in payment of overhead: 1 month 20% of output is sold against cash.

Expected minimum cash balance: `60,000 Production is carried on evenly during the year and wages and overheads accrue in the same way.