Mara Inc. is a retail business with the following financial forecasts as well as the current...

 

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Mara Inc. is a retail business with the following financial forecasts as well as the current (t=0) working capital levels ($000): 0 Net Income Depreciation CAPEX Accounts Receivables Inventory Accounts Payable 1 $9.75 $2.08 2 $11.95 $2.98 3 $14.67 $3.91 $0 $3.64 $4.47 $1.88 $4.59 $1.85 $1.85 $1.06 $0 $2.5 $2.75 $1.45 $0.97 $1.85 $1.85 4 $24.99 $5.03 $1.01 $0 $5.23 5 $30.03 $4.06 $2.76 $1.85 $2.21 $1.02 $1.85 a) Calculate the net working capital for each month. (2 marks) b) During which month is the firm's change in net working capital the greatest? (2 marks) Mara Inc. is a retail business with the following financial forecasts as well as the current (t=0) working capital levels ($000): 0 Net Income Depreciation CAPEX Accounts Receivables Inventory Accounts Payable 1 $9.75 $2.08 2 $11.95 $2.98 3 $14.67 $3.91 $0 $3.64 $4.47 $1.88 $4.59 $1.85 $1.85 $1.06 $0 $2.5 $2.75 $1.45 $0.97 $1.85 $1.85 4 $24.99 $5.03 $1.01 $0 $5.23 5 $30.03 $4.06 $2.76 $1.85 $2.21 $1.02 $1.85 a) Calculate the net working capital for each month. (2 marks) b) During which month is the firm's change in net working capital the greatest? (2 marks)

Answer rating: 100% (QA)

a Calculation of net working capital for each month Period 0 N... View the full answer