Question
Use the following information to calculate the additional fundsneeded for working capital: Revenues are $90,000 in the current year Next year's revenues are expected to
Use the following information to calculate the additional fundsneeded 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
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
