Fruit Holdings is considering investing in a new processing machine to produce a new line of canned fruit. The machine has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to residual value of $0.

The manufacturing machine will result in sales of 100,000 cans of the new line in year 1. Sales are estimated to grow by 10% per year each year through to year three. The price per cane that Fruit Holdings will charge its customers is $10 per can and is to remain constant. The cans have a cost per unit to manufacture of $4 each.

Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that Fruit Holdings needs to hold 3% of its annual sales in cash, 6% of its annual sales in accounts receivable, 8% of its annual sales in inventory and 5% of its annual sales in accounts payable.

Using the table below calculate the change in net working capital for year 0, year 1 and year 2 for this project.

Enter your answer directly into the table in the response box for this question.

Fruit Holdings is considering investing in a new processing machine to produce a new line of canned fruit. The machine has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to residual value of $0. The manufacturing machine will result in sales of 100,000 cans of the new line in year 1. Sales are estimated to grow by 10% per year each year through to year three. The price per cane that Fruit Holdings will charge its customers is $10 per can and is to remain constant. The cans have a cost per unit to manufacture of $4 each. Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that Fruit Holdings needs to hold 3% of its annual sales in cash, 6% of its annual sales in accounts receivable, 8% of its annual sales in inventory and 5% of its annual sales in accounts payable. Using the table below calculate the change in net working capital for year O, year 1 and year 2 for this project Enter your answer directly into the table in the response box for this question. Format BIE Fruit Holdings - Change in Net Working Capital Year 0 Year 1 Year 2 Cash Inventory Accounts Receivable Accounts Payable Total NWC Change in NWC MacBook Air