The following table tracks the main components of working capital over the life of a four-year project. 2021 2022 2023 2024 2025 Accounts receivable 0 174,000 249,000 214,000 0 Inventory 87,000 142,000 142,000 107,000 0 Accounts payable 31,000 56,000 62,000 41,000 0 Calculate net working capital and the cash inflows and outflows due to investment in working capital.

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
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The following table tracks the main components of working capital over the life of a four-year project.

  2021 2022 2023 2024 2025
Accounts receivable 0 174,000 249,000 214,000 0
Inventory 87,000 142,000 142,000 107,000 0
Accounts payable 31,000 56,000 62,000 41,000 0

Calculate net working capital and the cash inflows and outflows due to investment in working capital.

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