Problemmind blowers inc has a new project in mind that will, Ask an Expert

Accounting

Problem:

Mind Blowers, Inc. has a new project in mind that will increase accounts receivable by $28,000, decrease accounts payable by $6,000, increase fixed assets by $36,000, and decrease inventory by $11,000.

Required:

Question: What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172785

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