Question
A firm has the following forecast for these balance sheet items for a project. Accounts receivable will be 12% of sales, inventory will be 7%
A firm has the following forecast for these balance sheet items for a project.
Accounts receivable will be 12% of sales,
inventory will be 7% of sales,
accounts payable will be 9% of sales.
Sales are forecasted to be $400,000 for year 1, and $600,000 for year 2.
What is the investment in NWC for year 2?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the investment in Net Working Capital NWC for year 2 you need to determine the changes ...
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Step: 2
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
