How much is the working capital requirement?

2. The following information has been provided by a company for the year ended Dec 2019. Liabilities Equity, share capital 8% Bonds Reserves and surplus Long-term loans Assets 200,000 Net Fixed Assets 100,000 Inventories 50,000 Sundry debtors 50,000 Cash and cash equivalent 80,000 480,000 300,000 100,000 70,000 10,000 Sundry creditors 480,000 Sales for the year ended Dec 2019 amounted to 1,000,000 and is estimated that the same will amount to 1,200,000 for the year ended 2020. You are required to estimate the working capital requirements for the year ended 2020 assuming a linear relationship between sales and working capital. Estimation of Working Capital Requirements Actual Percentage to Sales Estimate 2019 2019 2020 Sales 1,000,000 100 1,200,000 Current Assets: Current Liabilities