Illustration 2 A company plans to manufacture and sell 400 units of a domestic appliance per month at a price of 600 e The ratio of costs to selling price are as follows: (5 of selling price) Row materials 305 Packing materials 105 Direct labour 155 Direct experte 5% Fixed overheads are estimated at 432.000 per annum The following norms are mointained for inventory management: Raw materials 30 days Pocking materials 15 days Finished goods 200 units Work-in-progress 7 days Other particulars are given below (a) Credit sales represent 80% of total sales and the dealers enjoy 30 working days credit. Balance 20% soles (b) Creditors allow 21 working days credit for payment. Id Log in payment of overheads and expenses is 15 working days. (d) Cash requirements to be 12% of net working capital. le) Working days in a year are taken as 300 for budgeting purpose. Prepore a Working Capital requirement forecast for the budget year