7. Estimate the working capital requirement on profit basis for the coming year from the following information of a manufacturing company. Expected annual sales is 1,56,000 units of `10 per unit. The anticipated ratios of cost to selling price are: Raw materials 50% and Direct Wages 15%. Budgeted cash overhead is `42,000 and depreciation is

`10,000 per annum. Planned stock will include raw material for `45,000 and 9,000 units of finished goods. Credit allowed to debtor is 1 month. Credit expected to be received from suppliers 3 weeks. Overhead and wages payment will be made 1 week after their occurrence. Material will stay in the process for 14 days. Cash in hand to be maintained is 15% of total working capital. Assume that production is carried on evenly throughout the year. Raw materials are introduced at the beginning of the process and wages and overhead accrue evenly during processing.