8. You are supplied with the following information by SDR Ltd. for the next year : (1) Production : 69,000 units. (2) Raw Materials in Store : 2 months consumption. (3) Production Process : 1 month. Finished Goods in Store : 2 months. (4) (5) Credit allowed by Suppliers : 3 months. (6) Credit given to Customers : 3 months. (7) Cost and Sales Structures (per unit) as follows : Raw Material Rs. 25 Direct Wages Manufacturing Ohs Administrative Ohs Rs. 5 Rs. 5 Rs. 4 Selling and Dist. Ohs Total Cost Rs. 3 Rs. 42 Profit Rs. 8 Selling Price Rs. 50 Wages are paid in the next month of accrual. Material is introduced in the begin of production cycle. Calculate working capital required by the company. State your assumptions.
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