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A firm is projecting sales of 5 0 , 0 0 0 units next year. Sale price will be Rs . 2 0 per unit.

A firm is projecting sales of 50,000 units next year. Sale price will be Rs.20 per unit. Raw Material cost, Labour cost and Overhead cost are estimated to be 25%,20% and 30% respectively. Raw materials remain in stock on an average for 2 weeks, work-in-progress for 1 week and finished goods for 3 weeks. Debtors are allowed 1 month credit while suppliers give 6 weeks credit. 25% of sales are on cash basis. 10% margin is kept for contingencies. Prepare a statement showing funds to be arranged for working capital (50 weeks per year).
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