Question
Change in net working calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has
Change in net working calculationSamuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $910,000 and total current liabilities of $650,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted.
AccountChange
Accruals+40,000
Marketable securities 0
Inventories -18,000
Notes payable 0
Accounts receivable +152,000
CASH+15,000
a. Using the information, given, calculate any change in net working capital that is expected to result from the proposed replacement action.
__________________________________________________________________________________________________
a. The change in net working capital is $ _________. ( Round to the nearest dollar)
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