Following details pertain to Aero Moda Ltd. for sale volume of 420,000 units: Income Statement for 2018-19 Raw material Wages Overheads Profits Sales Assets Fixed Assets Raw materials Work-in-progress Finished goods Sundry debtors Cash Total Assets Liabilities Share Capital Reserves Sundry Creditors Outstanding wages Outstanding expenses Total liabilities (INR in '000) 5000 1800 3700 4500 15000 The Balance Sheet as on 31" March 2019 (INR in '000) 3000 overhead 1000 300 900 1200 1000 7400 4500 1000 1500 200 200 7400 1. Determine the operating cycle and cash cycle period. Make necessary assumptions wherever required. 2. Similar firms from the industry keeps raw materials inventory for one month; work-in progress inventory, on an average one week; and finished goods inventory, on an average two weeks. The credit allowed by suppliers is three weeks and the company allows four weeks' credit to its debtors. The lag in payment of wages is one week and the lag in payment of overhead expenses is two weeks. The company sells one-fifth of the output against cash and is planning to maintain cash for 6 working days. What is the working capital needed to finance an activity level of 3,00,000 units? Assume that production is carried on evenly throughout the year. 3. Calculate maximum permissible bank finance (MPBF) as per Method I and Method II for Aero Moda Ltd. for the next year. 4. How will the bank assess the working capital requirement if the turnover method is used? (Marks 15)