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Working capital cash flow Cool Water Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These

Working capital cash flow

Cool Water Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The monthly sales for the first four months of the coming year are as follows,

January: 2,200,000

February: 2,300,000

March: 2,800,000

April: 2,900,000

What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash? Hint: Write the decrease as a negative number.

What is the change in working capital for January?

What is the change in working captial for February?

What is the change in working captial for March?

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