3. A pro forma cost sheet of a company provides the following particulars: Raw material Direct labour Overheads Total cost Profit Selling price Amount per unit (R) 80 30 60 170 30 200 The following further particulars are available:

(a) Raw material in stock, on an average one month; materials in process, on average half a month; finished goods in stock, on an average one month.

(b) Credit allowed by suppliers is one month; credit allowed to debtors is two months; lag in payment of wages is one and a half weeks; lag in payment of overhead expenses is one month; one-fourth of the output is sold against cash; cash in hand and at bank is expected to be 25,000. You are required to prepare a statement showing working capital needed to finance a level of activity of 104,000 units of production. You may assume that production is carried on evenly throughout the year, and wages and overheads accrue similarly.