● From the following information prepare a statement showing the Estimated Working Capital Requirements:

(i) Projected annual sales 36,000 units

(ii) Analysis of sales `

Raw materials 6 per unit Labour 4 per unit Overhead 3 per unit Profit 2 per unit Selling Price 15 per unit

(iii) Additional information:

(a) Raw materials in stock 1 month

(b) Production process 2 months

(c) Finished goods in store 3 months

(d) Credit allowed to debtor 4 months

(e) Credit allowed by suppliers 2 months

(f) Monthly wages and expenses are paid twice on 1st and 16th of each month.

(g) Production is carried on evenly during the year and expenses and wages accrue similarly.

(iv) Cash is to be kept at 10% of the Net Working Capital.