Question
The following table tracks the main components of working capital over the life of a four-year project. 2021 2022 2023 2024 2025 Accounts receivable 0
The following table tracks the main components of working capital over the life of a four-year project.
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Accounts receivable | 0 | 160,000 | 235,000 | 200,000 | 0 |
| Inventory | 80,000 | 135,000 | 135,000 | 100,000 | 0 |
| Accounts payable | 27,500 | 52,500 | 55,000 | 37,500 | 0 |
Calculate net working capital and the cash inflows and outflows due to investment in working capital. Note: Negative answers should be indicated by a minus sign.
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
