Question
Working capital cash flow. CoolWater, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 9 % of the monthly projected sales. These
Working capital cash flow.CoolWater, Inc. sells bottled water. The firm keeps in inventory plastic bottles at 9% 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 asfollows:
January: 2,000,000
February:2,300,000
March: 2,900,000
April: 3,000,000
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 ofcash?
Note:Enter a decrease as a negative number.
What is the change in working capital for January? (Round to the nearest dollar)
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