A new product line would the firm to add a significant amount of new inventory. In...
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A new product line would the firm to add a significant amount of new inventory. In the previous year, the firm has cash of $15 million, inventory of $270 million, and accounts receivable of $60 million. Meanwhile, their accounts payable was $45 million. After funding the project, the firm's cash would rise to $20 million, its inventory would increase to $400 million, and its accounts receivable would rise to $90 million. At the same time, its accounts payable would increase to $80 million. What would be the change in net working capital for this firm? A new product line would the firm to add a significant amount of new inventory. In the previous year, the firm has cash of $15 million, inventory of $270 million, and accounts receivable of $60 million. Meanwhile, their accounts payable was $45 million. After funding the project, the firm's cash would rise to $20 million, its inventory would increase to $400 million, and its accounts receivable would rise to $90 million. At the same time, its accounts payable would increase to $80 million. What would be the change in net working capital for this firm?
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Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
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