Working capital cash flow problem
spanglish23Working capital cash flow
Cool Water Inc. sells bottled water. The firm keeps in inventory plastic bottles at 12% of the monthly projected sales. These plastic bottles cost $0.005 each. The monthly sales for the first four months of the coming year are as follows,
January: 2,200,000
February: 2,300,000
March: 2,800,000
April: 2,900,000
What is the monthly increase or decrease in cash flow for inventory given that an increase is a use of cash and a decrease is a source of cash? Hint: Write the decrease as a negative number.
What is the change in working capital for January?
What is the change in working captial for February?
What is the change in working captial for March?
11 years ago
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