Question

The Buck Store is considering a project that will require additional inventory of $185,000 and will increase accounts payable by $153,000. Accounts receivable are currently $525,000 and are expected to increase by 15 percent if this project is accepted. What is the project's initial cash flow for net working capital

Answer 1

$635,750

Step-by-step explanation:

Net working capital = Current Asset - Current Liabilities

= $603,750 + $185,000 - $153,000

the project's initial cash flow for net working capital