A company is launching a new sales initiative and expects sales of $824,241 during the first year, and the gross profit margin to be 12%. To prepare for this, they plan to acquire 74 days worth of inventory. Their vendor will allow 36 days to pay its invoices. The company plans to sell only on account to its customers, so sales will be entirely credit based, and the average invoice is expected to take 42 days to collect. The company expects sales, costs and net working capital to grow 7.0% per year. What will be the incremental investment in operating net working capital for year 1? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 Type your answer.....

A company is launching a new sales initiative and expects sales of $824,241 during the first year, and the gross profit margin to be 12%. To prepare for this, they plan to acquire 74 days worth of inventory. Their vendor will allow 36 days to pay its invoices. The company plans to sell only on account to its customers, so sales will be entirely credit based, and the average invoice is expected to take 42 days to collect. The company expects sales, costs and net working capital to grow 7.0% per year. What will be the incremental investment in operating net working capital for year 1? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 Type your answer.....

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 1P

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