12. Mara Inc. is a retail business with the following financial forecasts as well as the current (t=0) working capital levels ($000): 0 2 3 4 $11.95 $14.67 $24.99 $2.98 $3.91 $5.03 CAPEX $1.06 $0 $1.01 Accounts Receivables $2.5 $2.75 $3.64 $5.23 $1.45 $0.97 $1.88 $2.76 $1.85 $1.85 $1.85 $1.85 Net Income Depreciation 1 $9.75 $2.08 Inventory Accounts Payable $0 $4.47 $4.59 $1.85 5 $30.03 $4.06 $0 $2.21 $1.02 $1.85 a) Calculate the net working capital for each month.. b) During which month is the firm's change in net working capital the greatest?
12. Mara Inc. is a retail business with the following financial forecasts as well as the current (t=0) working capital levels ($000): 0 2 3 4 $11.95 $14.67 $24.99 $2.98 $3.91 $5.03 CAPEX $1.06 $0 $1.01 Accounts Receivables $2.5 $2.75 $3.64 $5.23 $1.45 $0.97 $1.88 $2.76 $1.85 $1.85 $1.85 $1.85 Net Income Depreciation 1 $9.75 $2.08 Inventory Accounts Payable $0 $4.47 $4.59 $1.85 5 $30.03 $4.06 $0 $2.21 $1.02 $1.85 a) Calculate the net working capital for each month.. b) During which month is the firm's change in net working capital the greatest?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:12. Mara Inc. is a retail business with the following financial forecasts as well as the current (t=0)
working capital levels ($000):
0
1
2
$9.75 $11.95
$2.08 $2.98
$1.06
$0
$3.64
$1.88
$1.85 $1.85 $1.85
Net Income
Depreciation
CAPEX
Accounts Receivables $2.5 $2.75
$1.45 $0.97
Inventory
Accounts Payable
3
4
$14.67
$24.99
$3.91 $5.03
$0
$1.01
$4.47
$5.23
$4.59 $2.76
$1.85
$1.85
5
$30.03
$4.06
$0
$2.21
$1.02
$1.85
a) Calculate the net working capital for each month..
b) During which month is the firm's change in net working capital the greatest? {
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