Floral Shoppes has a new project in mind that will increase accounts receivable by $18,600, decrease...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Floral Shoppes has a new project in mind that will increase accounts receivable by $18,600, decrease accounts payable by $3,000, increase fixed assets by $24,000, and decrease inventory by $2,000. All of these items would occur at the project startup. What is the amount the firm should use as part of the initial investment that is attributable to the change in net working capital when it analyzes this project? [Your answer should reflect the "change in net working capital". Thus, an overall increase in net working capital should be entered as a positive number. An overall decrease in net working capital should be entered as a negative number. Enter your solution as a whole number -- no decimal places.] Your Answer: Floral Shoppes has a new project in mind that will increase accounts receivable by $18,600, decrease accounts payable by $3,000, increase fixed assets by $24,000, and decrease inventory by $2,000. All of these items would occur at the project startup. What is the amount the firm should use as part of the initial investment that is attributable to the change in net working capital when it analyzes this project? [Your answer should reflect the "change in net working capital". Thus, an overall increase in net working capital should be entered as a positive number. An overall decrease in net working capital should be entered as a negative number. Enter your solution as a whole number -- no decimal places.] Your Answer:
Expert Answer:
Answer rating: 100% (QA)
The change in net working capital is calculated by ... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
8th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these finance questions
-
Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette Sales price per rosette Total fixed costs per month Required: $ 2.00 5.00 1500.00 1....
-
On January 1, 2021, Entity A Company acquired all the assets and assumed all the liabilities of Entity B Company and merged Entity B into Entity A. In exchange for the net assets of Entity B, Entity...
-
In Problems 65-72, summarize all pertinent information obtained by applying the graphing strategy, and sketch the graph of y=f(x). 66. 68. 70. 72. x2x6 f(x) 2x 1x +14 f(x)-_-x2-4 x3-5x2-6x 3x +2...
-
Ralston Sports Corporation completed the following selected transactions during 2016: Jan 6 Declared a cash dividend on the 10,000 shares of $3.00, no-par preferred stock outstanding Declared a $0.45...
-
Under the professional standards currently in effect, what responsibility do auditors have to identify internal control problems within their clients accounting systems? To whom must auditors...
-
Using the Hald cement data (Example 10.1), find the eigenvector associated with the smallest eigenvalue of \(\mathbf{X}^{\prime} \mathbf{X}\). Interpret the elements of this vector. What can you say...
-
The financial statements of Marks and Spencer plc (M&S) are available at the books companion website or can be accessed at corporate.marksandspencer...
-
Requirement 1. What is the expected net cash inflow per year from purchasing a second shrink-wrap machine (i.e., how much cost could be saved each year by ell The expected net cash inflow (cost...
-
You recently joined a prestigious venture capital firm in Munich. As one of your first tasks, you should analyze the performance of the following mutually exclusive investment opportunities by...
-
Evaluate f(x)=4e-x-5 +3 for x = -8. (Round your answer to four decimal places, if necessary.) Provide your answer below:
-
3. Using power method, calculate the largest eigen value and corresponding eigen [201] vector for the matrix, B = 0 2 0 Carry out 5 iterations with initial 1 0 2 approximation correct to two decimal...
-
Complete this question by entering your answers in the tabs below. Required A Required B Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. Schedule of...
-
Cash account balance During the month, Bavarian Auto Co. received $489,650 in cash and paid out $413,250 in cash. a. Does this information indicate that Bavarian Auto Co. had net income of $76,400...
-
The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department...
-
Ozark closes to customers from Christmas until January 2. Employees do work counting inventory, doing maintenance, and cleaning. The following information pertains to potential year-end adjusting...
-
Based on the scenario described below, generate all possible association rules with values for confidence, support (for dependent), and lift. Submit your solutions in a Word document (name it...
-
On January 1, Year 4, a Canadian firm, Canuck Enterprises Ltd., borrowed US$208,000 from a bank in Seattle, Washington. Interest of 7.5% per annum is to be paid on December 31 of each year during the...
-
Dry Quick (DQ) is a medium-sized, private manufacturing company located near Timmins, Ontario. DQ has a June 30 year-end. Your firm, Poivre & Sel (P&S), has recently been appointed as auditors forDQ....
-
On December 31, Year 4, RAV Company purchased 60% of the outstanding common shares of ENS Company for $1,260,000. On that date, ENS had common shares of $500,000 and retained earnings of $130,000. In...
-
Consider the following cash flow profile and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically attractive?...
-
Consider the following cash flow profile and assume MARR is 10 percent/year and the finance rate is 4 percent/year. a. Determine the MIRR for this project. b. Is this project economically attractive?...
-
A university pumps its water from wells located on campus. The falling water table has caused pumping costs to increase, the quantity of water available to decrease, and the quality of water to...
Study smarter with the SolutionInn App