Royal Mount Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Itschief financial officer has developed the following estimates (in millions of dollars): (To copy the table below and use in Excel, click on icon in the upper right corner of table.)1 Cash2 Accounts receivable3 Inventory4 Accounts payableYear 1619617Year 21123822Year 314261123The cash flow associated with the change in working capital for year 1 is $ million. (Round to the nearest integer.)Year 45242151427Year 5162414९34Assuming that Royal Mount currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of thisinvestment. (Enter increases as negative numbers since they are uses of cash.)

Working capital refers to the funds that a company has available for its daily operations. It…

Royal Mount Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates (in millions of dollars): (To copy the table below and use in Excel, click on icon in the upper right corner of table.) Year 3 117 14 26 11 23 1 Cash 2 Accounts receivable 3 Inventory 4 Accounts payable Year 1 6 19 6 17 Year 2 11 23 8 Year 4 22 15 24 14 Year 5 16 24 14 27 Assuming that Royal Mount currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of this investment. (Enter increases as negative numbers since they are uses of cash.) 34 D

Royal Mount Games would like to invest in a division to develop software for video games. To evaluate this decision, the firm first attempts to project the working capital needs for this operation. Its chief financial officer has developed the following estimates (in millions of dollars): (To copy the table below and use in Excel, click on icon in the upper right corner of table.) Year 3 117 14 26 11 23 1 Cash 2 Accounts receivable 3 Inventory 4 Accounts payable Year 1 6 19 6 17 Year 2 11 23 8 Year 4 22 15 24 14 Year 5 16 24 14 27 Assuming that Royal Mount currently does not have any working capital invested in this division, calculate the cash flows associated with changes in working capital for the first five years of this investment. (Enter increases as negative numbers since they are uses of cash.) 34 D

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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