Question: Question 1 :(Calculating changes in net operatimg working capital) Racin Scooters is introducing a new product and has an expected change in net operating income

 Question 1 :(Calculating changes in net operatimg working capital) Racin Scooters

Question 1 :(Calculating changes in net operatimg working capital) Racin Scooters is introducing a new product and has an expected change in net operating income of $475,000. The company has a 34% marginal tax rate. This project will also produce $100,000 of depreciation per year. In addition this project will cause the following changes: Account receivable Inventory Accounts payable Without the project $45,000 65,000 70,000 With the project $63,000 80,000 94,000 Calculate the project's changes in net operating working capital

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