● Mr. B wants to start a new manufacturing concern. He wants to know the amount of Working Capital required for the first year. The following estimated figures are provided:

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Sales: inland 8,40,000 Export 1,20,000 Average inventories: Materials 5,000 Finished Goods 10,000 Purchases 72,000 Wages 2,40,000 Royalties 12,000 Salaries 96,000 Sundry expenses 60,000 Rent 10,000 Average Credit period allowed to debtors 4 weeks for inland sales and 2 weeks for export Average Credit period received 1 month Lag in payment of wages 2 months Lag in payment of royalties 5 months Lag in payment of salaries 1 month Lag in payment of sundry expenses is 1 month and rent is paid quarterly in advance. Profit not withdrawn throughout the year `50,000. 5% should be allowed for contingencies.

Determine the amount of Working Capital required.