Account Change Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash + $42,000 0...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Account Change Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash + $42,000 0 - 19,000 + 89,000 0 +155,000 +18,000 a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. c. Would the change in net working capital enter into any of the other cash flow components that make up the relevant cash flows? Explain. (Round to the nearest dollar.) a. The change in net working capital is $ b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. (Select from the drop-down menus.) Analysis of the purchase of a new machine reveals should be treated as an initial outlay and is a cost of acquiring the new machine. in net working capital. This c. Would the change in net working capital enter into any of the other cash flow components that make up the relevant cash flows? Explain. (Select from the drop-down menus.) in computing the terminal cash flow, the net working capital Enter your answer in the answer box. should be reversed. ? Account Change Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash + $42,000 0 - 19,000 + 89,000 0 +155,000 +18,000 a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. c. Would the change in net working capital enter into any of the other cash flow components that make up the relevant cash flows? Explain. (Round to the nearest dollar.) a. The change in net working capital is $ b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. (Select from the drop-down menus.) Analysis of the purchase of a new machine reveals should be treated as an initial outlay and is a cost of acquiring the new machine. in net working capital. This c. Would the change in net working capital enter into any of the other cash flow components that make up the relevant cash flows? Explain. (Select from the drop-down menus.) in computing the terminal cash flow, the net working capital Enter your answer in the answer box. should be reversed. ?
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
On October 28, 1983, Steve Gresham, doing business as Midway Cycle Sales, entered into a Wholesale Financing Agreement with ITT Commercial Finance Corporation. The agreement was to finance the...
-
The unadjusted and adjusted trial balances for Grant Advertising Agency Limited at its year end, December 31, 2012, follow. The company adjusts its accounts annually. Additional information: During...
-
ErgoNow sells its main product, ergonomic mouse pads, for \($13\) each. Its variable cost is \($5.60\) per pad. Fixed costs are \($200,000\) per month for volumes up to 60,000 pads. Above 60,000...
-
1. Is the production and distribution of beer nationally responsive? 2. If beer is mainly local, why are there mergers and acquisitions of beer companies? 3. In the integration/responsiveness matrix,...
-
A company has revenues of $1,000,000 and gross profit of $100,000 (ignore taxes). If an employee embezzles $10,000 from the company, how much will the company need to increase its revenues in order...
-
Foster Company purchased $ 1 , 2 0 0 , 0 0 0 of 8 % , 5 - year bonds from Carlin, Inc. on January 1 , 2 0 2 3 , with interest payable on July 1 and December 3 1 . The bonds sold for $ 1 , 2 4 9 , 8 9...
-
How can strategic leveraging of resources optimize operational efficiency within a dynamic business environment ?
-
Question 2 : Inventory Management Alamac aims to maintain optimal inventory levels to meet demand without incurring excessive costs. Calculate the inventory turnover rate and days of supply using the...
-
2. The volume of a metal rod was determined to be 38.6 mL. Its mass was found to be 400.3 g when measured on a beam balance. Would measuring the mass on a digital balance improve the of the density...
-
Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) Cost per pound of direct materials 3 $6 The company...
-
what ways are we integrating environmental, social, and governance (ESG) considerations into our strategic planning?
-
Case study: Spotifys Agile Organizational Structure: Is It a Good Fit for a Financial Services Firm Do you think Spotifys agile structure created impediments for financial growth? Why or why not?...
-
What is beacon marketing? What are digital wallets?
Study smarter with the SolutionInn App