Question
Problem 27-4 Quarterly working capital levels for your firm for the next year are included in the following table. What are the permanent working capital
Problem 27-4 Quarterly working capital levels for your firm for the next year are included in the following table. What are the permanent working capital needs of your company? What are the temporary needs? Quarter (000) 1 2 3 4 Cash $100 $100 $100 $100 Accounts receivable 200 100 100 600 Inventory 200 500 900 50 Accounts payable 100 100 100 100 Quarter (000) 1 2 3 4 Net working capital Permanent working capital Temporary working capital Requirements 1. In cell D14, by using cell references, calculate the net working capital for year 1 (1 pt.). Copy cell D14, and paste it onto cells E14:G14 (1 pt.). 2. To calculate the permanent working capital, you need to find the minimum net working capital by using the function MIN. In cell D15, by using the function MIN and cell references, calculate the permanent working capital (1 pt.). 3. In cell D16, by using relative and absolute cell references, calculate the temporary working capital needs for year 1 (1 pt.). Copy cell D16, and paste it onto cells E16:G16 (1 pt.).
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