Prior to the outbreak of Covid-19 in Germany, the Berlin based brewing company Federbrau was very successful throughout the European continent. During 2019, the brewer reported net sales of 415 million, 6% up from 2018. Internal auditors also determined its operating profit (EBIT) amounted to 40 million in the same period. As part of their expansion strategy, they devoted substantial investments in net working capital, the companys net book value increased from 215 million to 230 million, while net fixed assets remained stable at 130 million. The company managed to maintain its capital structure with a debt to equity ratio of 0.75 and a 40% Equity Ratio.

Based on German corporate income tax of 25% and interest rate of 5.0%, calculate the following;

• Working Capital Requirement (WCR) and working capital ratio over sales for 2019