Describe the factors that affect the level of working capital requirement of a company.

Following is the cost statement of ABC Company Ltd :

You are also given the following additional information :

(i) Average raw material in stock One month

(ii) Average raw materials in process Half a month

(iii) Stock of finished goods 30 days

(iv) 20% sales are cash sales -

(v) Expected cash balance Tk. 100,000

(vi) Credit allowed to debtors 2 month

(vii) Credit allowed by creditor 45 days

(viii) Time lag in payment of wages 15 days

(ix) Time lag in payment of overheads (Note 360 days in a year)  1 month

You are required to prepare statemeat showing the working capital requirement if level of activity of the company is 70,000 units. Assume 360 days in a year.