Question: Junior's has a new project in mind that will increase accounts receivable by $16500, increase accounts payable by $14000, increase fixed assets by $10000, and

Junior's has a new project in mind that will increase accounts receivable by $16500, increase accounts payable by $14000, increase fixed assets by $10000, and decrease inventory by $2000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?

$500

$10,500

$28,500

$30,000

$38,500

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

UNIVERSITY OF a) Kean Technology (KT) purchased a new coal furnace six years ago at a APPLIED SCIENCES million. Last year, the government changed the emission requirements and this furnace cannot...

The Green Shingle purchased a parcel of land 6 years ago for $299,500. At that time, the firm invested $64,000 grading the site so that it would be usable. Since the firm wasn't ready to use the site...

Junior's has a new project in mind that will increase accounts receivable by $44000, increase accounts payable by $23000, increase fixed assets by $30000, and decrease inventory by $10000. What is...

17. Floral Shoppes has a new project in mind that will increase accounts receivable by $19,000, decrease accounts payable by $4,000, increase fixed assets by $27,000, and decrease inventory by...

16. Custom Tailored Shirts is a specialty retailer offering T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $21,000 of T-shirts $18,000 of sweatshirts, and $2,900 of caps....

NEED HELP PLS WITH CALCULATIONS 16. Custom Tailored Shirts is a specialty retailer offering T-shirts, sweatshirts, and caps. Its most recent annual sales consisted of $21,000 of T-shirts, $18,000 of...

Question 14 (4 points) 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...

Question 6 4 pts The Shoe Box is considering adding a new line of winter footwear to its product lineup. Which of the following are relevant cash flows for this project? 1. Decreased revenue from...

Glass Blowers, Inc. has a new project in mind that will increase accounts receivable by $11,000, decrease accounts payable by $6,000, increase fixed assets by $6,000, decrease inventory by $18,000...

Musketeer Co. expects daily usage of 500 lb of material X, an anticipated lead time of seven days, and a desired safety stock of 2,500 lb. a. Determine the order point. b. Determine the number of...

An electric mixer is being used to mix up some cake batter. What happens to the motor if the batter is too thick, so the beaters are turning slowly?

Olivia purchased a used car and financed it with 3 6 monthly payments of $ 4 5 2 . 6 5 . If interest is charged at 1 1 % compounded monthly, what was the original loan balance

Each morning during a three - week sprint, Liam's team gathers for a ten - minute meeting. Hi , manager asks each person to discuss that day's goals. This meeting is called a daily huddle, backlog,...

3. To learn more about how emotions influence your thinking and behavior, complete each of the following sentences. Once you have completed them all, reflect on your written responses.

2. To learn more about the way you handle anger, record your anger responses in a journal for a period of five days. When anger surfaces, record as many details as possible. What triggered your...

c. What results did you experience from the way you handled this situation? Describe both positive and negative results.