The management of RT Ltd. has called for a statement showing the working capital need to finance a level of activity of 2,00,000 units of output for the year. The cost structure for the company’s production for the above level of activity is (per unit) : Raw materials Rs. 30 Direct labour Rs. 15 Overhead (including depreciation @ 6 per unit) Rs. 15 Selling price Rs. 80 Other Information : a) Minimum desired cash balance is Rs. 4,00,000 b) Raw materials are held in stock, on an average for 1 month c) Work in progress (assume 50% completion stage) will appropriate to 1 months production d) Finished goods remain in warehouse, on an average for 2 months e) Supplier of materials extend one month credit and debtors are provided 2 months credit. Cash sales are 20% and credit purchase is 75% of purchase f) There is a time lag in payment of wages one month and half a month in case of overheads Prepare a statement of working capital requirement.