Question
Determine the change in net working capital that appears warranted for the following proposed project: Inventory levels will decrease 20% from their current value
Determine the change in net working capital that appears warranted for the following proposed project: Inventory levels will decrease 20% from their current value of $500,000; cash will increase by $25,000; wage accruals will increase by $60,000; accounts receivable because of a new collection system-will increase by only $15,000; accounts payable will increase by $45,000. What happens to net working capital at the end of the project's life?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
9th Edition
978-0470317549, 9780470387085, 047031754X, 470387084, 978-0470533475
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