Question
Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 9% of the monthly projected sales. These plastic bottles cost $0.006
Cool Water, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 9% of the monthly projected sales. These plastic bottles cost $0.006 each. The monthly sales for the first 4 months of the coming year are as follows:
January: 2,300,000
February: 2,300,000
March: 2,700,000
April: 2,900,000
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?
What is the change in working capital for February?
What is the change in working capital for March?
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