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d- P11-10 Change in net working capital calculation MSF Manufacturing Company is cons com- ring the purchase of a new machine to improve its production

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d- P11-10 Change in net working capital calculation MSF Manufacturing Company is cons com- ring the purchase of a new machine to improve its production efficiency. The pany has total current assets amounting to $865,000 and total current liabilities c 5673,000. As a result of the proposed replacemen expect t, the following changes are ed in the amount of the current assets and current liabilities noted. Change +$ 43,500 -69,000 +378,000 Account Cash Inventories Accounts receivable Accounts payable Notes payable Accruals Marketable securities 0 + 230,000 + 38,000 a. Using the information given, calculate any change in net working capital that is b. Explain why a change in these current accounts would be relevant in determining c. Would the change in net working capital enter into any of the other cash flow expected to result from the suggested replacement plan. the initial investment for the proposed capital expenditure. components that make up the relevant cash flows? Explain

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