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Question: Your company is forecasting that by eliminating an existing project today that sales this year will decrease by $100,000. Assume that net working capital will change, that is decrease, by $10% of the change in sales and that:

- Cash requirements will change by 10% of the change in sales.

- Inventory change increase by x% of the change in sales.

- Payables will change by 10% of the change in sales.

- Receivables will change by 20% of the change in sales.

a) What is the change in inventory as a percentage of the change in sales?

b) What is your forecast of the change in current assets in dollars?

c) What is your forecast of the change in current liabilities in dollars?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92764649

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