Only Hand Written or on Document accepted , No Excel work Accepted , And Do it on ASAP Basis , With Workings

6. What do you mean by operating cycle? From the following information prepare a statement showing the estimated working capital requirement: (1) Projected annual sales 36,000 units (2) Analysis of sales Raw materials Rs. 6 per unit Labour Rs. 4 per unit Overhead Rs. 3 per unit Profit Rs. 2 per unit Selling price Rs. 15 per unit (3) Additional Information: (a) Raw material in stock 1 month 6) Production process 2 months (c) Finished goods in store 3 months (d) Credit allowed to debtors 4 months (e) Credit allowed by suppliers 2 months (f) Monthly wages and expenses are paid twice on 15 and 16h of each month. (g) Production is carried on evenly during the year and expenses and wages accrue similarly. (h)Cash is to be kept at 10% of the net working capital