Question: Wislon and Taylor are implementing a project which will increase accounts payable by $5,000, increase inventory by $3,000, and decrease accounts receivable by $2,000. All

Wislon and Taylor are implementing a project which will increase accounts payable by $5,000, increase inventory by $3,000, and decrease accounts receivable by $2,000. All net working capital will be recouped when the project terminates. What is the cash flow related to the net working capital for the last year of the project?

a.

-$4,000

b.

$0

c.

$1,000

d.

$4,000

e.

-$10,000

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!