Assuming a year of 50 weeks of 5 days each, estimate the working capital requirements from the given data.

Sales: 1,50,000 units sold at Rs.1 per unit on

credit.

Consumers are allowed 60 days credit,

Production cost:

Raw material 0.50

Labour 0.20

Expenses 0.21 The production cycle is 20 days and all materials are issued at the commencement of

each cycle.

Credit allowed by suppliers 50 days

Credit required: One quarter of the remaining current assets.

Stock level:

Raw materials: 40 days of supply Finished goods: 20 days of supply

Ignore work in progress.