Question: 1.) A project that increased sales was accompanied by a $50,000 increase in inventory, a $20,000 increase in accounts receivable, and a $25,000 increase in

  • 1.)
    A project that increased sales was accompanied by a $50,000 increase in inventory, a $20,000 increase in accounts receivable, and a $25,000 increase in accounts payable. Assuming these amounts remain constant, by how much has net working capital increased?
    2) What is the amount of the operating cash flow for a firm with $500,000 profit before tax(EBIT), $100,000 depreciation expense, and a 35% marginal tax rate?

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