The following table tracks the main components of working capital over the life of a four-year project. Accounts receivable Inventory Accounts payable 2021 2022 2023 2024 2025 0 78,000 26,500 156,000 133,000 51,500 231,000 196,000 0 133,000 98,000 0 53,000 36,500 0 Calculate net working capital and the cash inflows and outflows due to investment in working capital.
The following table tracks the main components of working capital over the life of a four-year project. Accounts receivable Inventory Accounts payable 2021 2022 2023 2024 2025 0 78,000 26,500 156,000 133,000 51,500 231,000 196,000 0 133,000 98,000 0 53,000 36,500 0 Calculate net working capital and the cash inflows and outflows due to investment in working capital.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following table tracks the main components of working capital over the life of a four-year project.
Accounts receivable
Inventory
Accounts payable
2021
2022
2023
2024
2025
0
156,000
231,000
196,000 0
78,000
26,500
133,000
51,500
133,000
53,000
98,000 0
36,500 0
Calculate net working capital and the cash inflows and outflows due to investment in working capital.
Note: Negative answers should be indicated by a minus sign.
2021
2022
2023
2024
2025
Net working capital
Cash flows
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