Question
The Big Bazar ltd is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the floor inventory by
The Big Bazar ltd is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the floor inventory by 250000 and increasing its debt to suppliers by 40% of that amount. The company will also spend 300000 for a building contractor to expand the size of the showroom. This will add an additional 60000 of annual depreciation. The company will be offering credit to its customers and expect to generate and additional 200000 in sales. Its trade receivables represent 20% of the sales. If any, give the amount of net working capital to be included in the initial cash flow of this project.
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