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Julie and Jim started a business on Etsy today with inventory of $20,000. At the end of every year, they increase the inventory by 10%.
Julie and Jim started a business on Etsy today with inventory of $20,000. At the end of every year, they increase the inventory by 10%. They do all transactions through cash and so have no accounts receivable or payable. Three years from today they will close their business and liquidate their (end of year 2) inventory, i.e., they will bring it down to 0. What is the cash flow due to liquidating the inventory?
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