Question: Question e s - $39.000 Change in networking capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes
Question e s - $39.000 Change in networking capital calculation Samuels Manufacturing is considering the purchase of a new machine to replace one it believes is obsolete. The firm has total current assets of $916,000 and local current $636,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted Account Change Accra Marketable securities Inventories -17.000 Accounts payable 90.000 Notes payable Accounts receivable 152.000 Cash . Using the information given calculate any change in networking capital that is expected to rest from the proposed replacement action b. Explain why a change in these current accounts would be relevant in determining the in v estment for the proposed capital expenditure a. The change in networking capitalis (Round to the nearest dolar) 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 in networking capital. This should be treated an initial outy and is a cost of acquiring the new machine evant cash flows? Explain. (Select from the drop-down menus) c. Would the change in networking capital enter into any of the other cash flow components in computing the terminal cash flow, the networking capital should be reve decrease Change in net working capital calculation Samuels Manufacturing is considering the purchase of a new nachine to replace one it believes is obsolete. The firm has total current assets of $916,000 and total current liabilities of $636,000. As a result of the proposed replacement, the following changes are anticipated in the levels of the current asset and current liability accounts noted. Change + $39,000 Account Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash - 17,000 +90,000 + 152,000 +15,000 a. The change in net working capital is $ (Round to the nearest dollar) 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.) should be Analysis of the purchase of a new machine reveals in net working capital. This treated as an initial outlay and is a cost of acquiring the new machine 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 should be reversed
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