Ask Question
23 February, 13:00

Mike's Fish Market is implementing a project that will initially increase accounts payable by $6,100, increase inventory by $2,800, and decrease accounts receivable by $1,300. 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?

+3
Answers (1)
  1. 23 February, 15:59
    0
    The net working capital is - $4600.

    Explanation:

    Use the below formula to calculate net working capital:

    Net working capital = Total current assets - Total current liability

    Total current liability = $6100

    Total current asset = increase in inventory - decrease in account reciveable

    Total current asset = $2800 - 1300

    = $1500

    Now, Net working capital = Total current assets - Total current liability

    Net working capital = $1500 - $6100

    = - $4600

    Thus, net working capital is - $4600.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Mike's Fish Market is implementing a project that will initially increase accounts payable by $6,100, increase inventory by $2,800, and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers