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Paris Croissant is running a bakery caf business. In order to make croissants, the store purchased flour, sugar, and cream cheese for $800 today. Such
Paris Croissant is running a bakery caf business. In order to make croissants, the store purchased flour, sugar, and cream cheese for $800 today. Such a purchase used $200 in cash; and the rest is financed by a line of credit provided by its supplier. The croissants are sold on credit for $1,050 next year. The store obtains the receivables and pays off the payables in two years. What is the change in the net working capital (NWC) for each year? NWC: Year 0 is NWC: Year 1 is NWC: Year 2 is
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