Question: Right click and open image in new tab. Change + $42,000 Account Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash - 14,000

 Right click and open image in new tab. Change + $42,000

Right click and open image in new tab.

Change + $42,000 Account Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash - 14,000 + 86,000 +146,000 + 15,000 a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. 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. Change + $42,000 Account Accruals Marketable securities Inventories Accounts payable Notes payable Accounts receivable Cash - 14,000 + 86,000 +146,000 + 15,000 a. Using the information given, calculate any change in net working capital that is expected to result from the proposed replacement action. b. Explain why a change in these current accounts would be relevant in determining the initial investment for the proposed capital expenditure. 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

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