FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:A. What is the total change in Net Working Capital given the following:
$10 million
$20 million
$5 million
$10 million
$15 million
Decrease in accounts receivable:
Decrease in inventory:
Increase in prepaid expenses:
Increase in other current liabilities:
Decrease in accounts payable:
B. Describe and provide specific examples of how financial ratios / metrics can be used to
support specific business decisions such as financing, credit granting and strategic growth.
C. Briefly explain the concept of Free Cash Flow and articulate how it can be employed by
corporate managers.
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