Mushroom Queendom is a mushroom packing company that is about to start a new project. The company had before the start of the project, sales for $1.06M and Costs of Good Sold equivalent to 41% of the sales. The project is expected to increase sales in 5% in year 1, while keeping the same proportion of COGS. If inventories for the company were $265K, accounts receivable were $54K and accounts payable were $107K before the project, how much will the company have to invest in net working capital to start the project?

Answer rating: 100% (QA)

1 Calculate the initial level of Net Working Capital NWC NWC Accounts Receivable Inventories Account... View the full answer