Question
10.4 Working capital cash flow. Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11% of the monthly projected sales.
10.4 Working capital cash flow.
Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 11% of the monthly projected sales. These plastic bottles cost $0.004 each. The monthly sales for the first four months of the coming year are as follows:
| January:2,000,000 |
|
| February:2,300,000 | |
| March:2,700,000 | |
| April:3,000,000 |
What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash?Note:Enter a decrease as a negative number. What is the change in working capital for January?
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The Handbook Of Post Crisis Financial Modelling
Authors: Emmanuel Haven, Philip Molyneux, John Wilson, Sergei Fedotov, Meryem Duygun
1st Edition
1137494484, 978-1137494481
