The following table tracks the main components of working capital over the life of a four-year project. Accounts receivable Inventory Accounts payable Net working capital Cash flows 2021 2021 0 89,000 32,000 2022 178,000 144,000 57,000 2023 253,000 144,000 64,000 Calculate net working capital and the cash inflows and outflows due to investment in working capital. Note: Negative answers should be indicated by a minus sign. 2022 2024 218,000 109,000 42,000 2023 2024 2025 0 0 0 > 2025
The following table tracks the main components of working capital over the life of a four-year project. Accounts receivable Inventory Accounts payable Net working capital Cash flows 2021 2021 0 89,000 32,000 2022 178,000 144,000 57,000 2023 253,000 144,000 64,000 Calculate net working capital and the cash inflows and outflows due to investment in working capital. Note: Negative answers should be indicated by a minus sign. 2022 2024 218,000 109,000 42,000 2023 2024 2025 0 0 0 > 2025
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
Section: Chapter Questions
Problem 5MC
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