Jeff’s Stereo Sound is expanding its product offerings to reach a wider range of customers. The expansion project includes increasing the floor inventory by $74515 and increasing its debt to suppliers by 77% of that amount. The company will also spend $233997 for a building contractor to expand the size of the showroom. As part of the expansion plan, the company will be offering credit to its customers and thus expects accounts receivable to rise by $16263. For the project analysis, what amount should be used as the initial cash flow for net working capital?

Answer rating: 100% (QA)

The initial cash flow for net working capital is calculated by considering changes in curre... View the full answer