Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to calculate the additional funds needed for working capital: Revenues are $90,000 in the current year Next year's revenues are expected

Use the following information to calculate the additional funds needed for working capital:

Revenues are $90,000 in the current year

Next year's revenues are expected to equal $100,000

Receivables are usually 20%

Inventory is usually 10% of revenues

Payables are usually 5% of revenues

a. $25,000 b. $22,500 c. $3,000 d. $2,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics For Finance

Authors: Chris Brooks

2nd Edition

052169468X, 9780521694681

More Books

Students also viewed these Finance questions

Question

4. Analyzing how well the members of the group work together.

Answered: 1 week ago